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November 26, 2014

Florida Lawmakers Aim to Speed Up Foreclosures

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Florida Lawmakers Aim to Speed Up Foreclosures

Lawmakers in Florida are hoping the third time is the charm in trying to get foreclosure reform passed. The Sunshine state faces the highest foreclosure rate in the nation. 

In the latest attempt, Rep. Kathleen Passidomo, R-Naples, is introducing a bill that aims to speed up foreclosures in the state. 

In Florida, the foreclosure process—which must wind through the courts—can take more than 600 days. Foreclosures remain high too as courts face huge backlogs. One in five mortgages in Florida is currently delinquent, according to Lender Processing Services. What’s more, more than half of those delinquent loans have yet to even enter the foreclosure process.

"We need to make sure the process is as efficient as possible while at the same time giving the borrower their due process rights," says Passidomo. "Unfortunately, if you don't have an income or you can't afford to pay anything, the property can't just sit in limbo forever."

The bill would grant condominium associations the chance to speed up the foreclosure process, particularly when banks are the sticking point. The bill also contains a new limit on deficiency judgments. Currently, banks have five years to pursue a deficiency judgment against a home owner to collect outstanding debts. The current bill would reduce that period to one year. 

Source: “House Foreclosure Bill Would Speed Up Process,” Tampa Bay Times (Jan. 5, 2012) and “Florida May Relaunch Rocket Docket,” HousingWire (Jan. 4, 2012)

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Florida Lawmakers Seek to Speed Up Foreclosures