LMM Loan ModificationBy Omar J. Arcia, Esq.
Foreclosure Defense and Bankruptcy Protection Attorney


            It has been about one year since the Loss Mitigation Mediation Program (“LMM”) was launched in all South Florida Bankruptcy Courts. This new program started as a direct response to the frustration experienced by many homeowners who have tried to modify their home loans time and time again without success. The success rate for traditional loan modifications outside of bankruptcy is less than 15%. So far, about 85% of the eligible homeowners that have completed the LMM program have obtained permanent loan modifications with significantly better loan terms, lower interest rates, and even huge principal forgiveness. Here are some of the other benefits of the LMM Program that you need to consider.


  • Under the LMM program, the foreclosure process stops immediately and any foreclosure sale date is automatically cancelled without further hearing.
  • The entire program is court supervised, a mediator will be appointed to your case, and all negotiations must be concluded and a decision rendered within 150 days of the date a mediation Order is signed by the Court.
  • Another frustrating feature for homeowners about conventional loan modification applications is that lenders continuously misplace documents. Under the LMM program there are no more “lost documents” by the bank since all documents are uploaded to a single website to which all parties have immediate
  • If the lender refuses to provide a timely response to a completed loan modification application, or even refuses to participate in the program, the homeowner now has the right to seek assistance from a federal judge to ensure that the lender complies with its obligations. This enforcement component is not available to homeowners trying to do a loan modification on their own.
  • The program applies to both Chapter 7 and 13 if you are surrendering a property, but loan modifications are only available in a Chapter 13
  • There is an increased likelihood that your Chapter 13 Bankruptcy Plan will be confirmed by the Trustee given that once the mortgage loan is modified under LMM, the homeowner’s future financial picture is more clearly defined.


While these are exciting new benefits for any homeowner struggling with a loan modification of their mortgage, a Chapter 13 bankruptcy petition is NOT a do it yourself proposition. Many consumers that attempt to file their own, have their cases dismissed with prejudice for 180 days for failure to comply with the Bankruptcy Code. This means you cannot refile for bankruptcy during that time. Any homeowner even considering this alternative must seek sound legal advice from attorneys with Chapter 13 bankruptcy experience, like the knowledgeable attorneys and staff at the Arcia Law Firm.


More detailed explanations of different options available to homeowners considering bankruptcy are discussed in a new consumer-friendly DVD developed by the Arcia Law Firm entitled “Fight For Your Home.” If you mention that you heard about the DVD through this magazine you will receive a FREE copy during the appointment to discuss your case in detail with a member of our qualified legal team.


If you are struggling to make your monthly mortgage payments, or frustrated with a loan modification process please contact the Arcia Law Firm today at 954-437-9066 to schedule a free consultation with an attorney, or visit for more information.

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