Homeowners hope mediation program can save their houses [South Florida]
Lance Dunning tried for two years to sell his house in a short sale after its value plunged well below the $400,000 mortgage he took out in 2006.
He had three offers for three short sales for $200,000, more than the home’s assessed value – but was unable to connect with Bank of America officials to close the deal. In a short sale, the bank agrees to take a loss on the mortgage so the home can be sold without requiring the owner to pony up cash, too.
Finally, the bank foreclosed and took back the house in a public auction on the Lee County Courthouse steps.
This is the type of scenario that a new Florida Supreme Court-mandated program – which goes into effect today in Southwest Florida – is meant to avert.