Southern District of Ohio Implements MMM Program

The United States Bankruptcy Court for the Southern District of Ohio has implemented a Mortgage Modification Mediation (“MMM”) program. This MMM program is similar to the one enacted in Florida in 2014. The MMM program is designed to function as a forum for debtors and creditors to reach a consensual resolution when a debtor’s property is at risk of foreclosure or any other adverse action.

PLG’s familiarity with the MMM process
Padgett Law Group (“PLG”) is already familiar with the MMM program being that PLG has been involved in MMM mediations in Florida since its enactment in 2014. This allows PLG to seamlessly assist its clients in navigating this process in Ohio.

Why Client’s Need Counsel at The Beginning of The Case
The MMM process begins by the Debtor including language in the Non-Standard Provisions of the Chapter 13 Plan that he or she intends to participate in MMM. The Debtor must then file a Motion for Referral to Mortgage Modification Mediation. The Debtor must also make adequate protection payments of 31% of gross monthly income, less HOA fee or the contractual mortgage payment (whichever is less) on homestead property and 75% of the rental proceeds for non-homestead property.
It is important to evaluate whether or not these adequate protection payments are sufficient and if not, timely file an objection. Moreover, it is important to determine if the adequate protection payment amount is sufficient to cover escrow. If not, then there is an argument that it is not “adequate protection” and therefore objectionable.

Creditor’s Duties
Within ten (10) days after entry of the Order Directing Mortgage Modification Mediation, the Creditor and the Creditor’s attorney, shall register on the DMM Portal. A link may be found here https://www.dclmwp.com/  Creditor must also acknowledge receipt of the initial MMM package within seven (7) days after the Debtor submits it to the DMM portal and designate a single point of contact.

Timeline
The MMM Period initially shall be one hundred fifty (150) days from the entry date of the Order Directing Mortgage Modification Mediation. Debtor shall have two (2) one-hour MMM conference.

Questions or Further Assistance
As mentioned above, PLG has been involved in the MMM program Florida since 2014. The MMM program in Southern District of Ohio is similar to the one in Florida. Should you have any questions or concerns, please feel free to reach out to PLG and we will be more than happy to assist.
A complete link to the program may be found here.