Effective February 1, 2017 the United States Bankruptcy Court for the District of Arizona adopted uniform procedures and mandatory forms for its Mortgage Modification Mediation (MMM) Program (General Order 16-2). This program applies to Chapter 13 bankruptcy filings and all types of real property.
Designed to facilitate communications between debtors and mortgage lenders
The purpose of the program is to “function as a forum for individual debtors to explore mortgage modification options with their lenders for real property in which the debtor has an interest or is obligated on the promissory note or mortgage. The goal of the MMM Program is to facilitate communication and exchange of information in a confidential setting and encourage the parties to finalize a feasible and beneficial agreement under the supervision of the United States Bankruptcy Court for the District of Arizona”
The Bankruptcy court will not force either the lender or borrower to participate in the program
The Bankruptcy Court will not force any modification and will make no adjudication except with the consent of both parties. Any signed agreement reached at mediation must be approved by the Bankruptcy Court before it is binding and enforceable.