MANATEE COUNTY, Fla. – May 9, 2011 – When Tracy went into the foreclosure mediation session last month, she hoped the bank would consider reducing her mortgage rate instead of taking her Palmetto home.
Instead, the bank demanded that she pay off the entire loan amount of more than $50,000. When Tracy said she couldn’t afford that, the bank offered to pay her $1,000 – for a rental truck if she moved out within 60 days.
“I broke down and cried,” said Tracy, not her real name. “I was so shocked, I felt like I was having a heart attack.”
Her experience illustrates one reason why Florida’s foreclosure mediation program has been so far ineffective, experts say.