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Mortgage Modification Mediation FAQs - FLNB

If the debtor cannot devote 31% of their income to their mortgage payment, can they still participate in this program?

  • The 31% minimum is required for the “fast track” program wherein an order granting referral to mediation is automatically entered per Standing Order #5. Debtors who cannot commit 31% of their income may still be eligible to participate but a “non standard” motion must be filed and heard (Motion for Referral to Mortgage Modification Mediation, Non‐Standard Requirements ‐ no local form).   

Does the 31% mortgage payment include taxes, insurance, and homeowners’ association dues/fees?

  • Yes. This amount can include principal, interest, property taxes, homeowners and flood insurance, and association dues (homeowners or condo). 

How are attorney’s fees determined?

  • Attorney's fees of $3500.00, excluding costs, shall be considered normal and customary in routine Chapter 13 cases. Standing Order No. 19 defines a "routine case" as one in which the attorney has prepared and filed the petition, lists, schedules, plan and all other required documents; attends the 11 U.S.C. § 341(a) Meeting of Creditors; attends the hearing on confirmation; prepares and serves notices of valuation pursuant to Local Bankruptcy Rule 3012-1 B; prepares and serves motions to avoid liens pursuant to 11 U.S.C. § 522(f); negotiates adequate protection agreements, if necessary, for one automobile and for the homestead; and files uncontested objections to claims. An attorney seeking fees in excess of this amount shall file an application in accordance with 11 U.S.C. § 330, and this court's Local Rule.

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