Florida had the second-highest numbers of foreclosures of any state in the country in March. Florida foreclosure courts have a 366,250-case backlog. A bill aimed at reducing the backlog of foreclosure cases has passed in the Florida House and Senate and is headed to Governor Scott for signature.
The new legislation would lessen the amount of time that a bank can go after a homeowner for unpaid mortgage debt, call for senior judges to hear foreclosure cases and restrict owners whose homes were wrongfully foreclosed on from reclaiming them if a third party has purchased them.The legislation also expedites the process by requiring a judge to immediately review any foreclosure filings in chambers without a hearing, before asking the parties to show cause why a final judgment should be entered.That process allows the judge to enter a final judgment quickly if the lender feels the borrower has no defense. But if a homeowner believes he or she has a case, a judge will be required to hear the homeowner’s case.
If the bill is signed into law by Governor Scott, we can expect to see significant movement in clearing the foreclosure case backlog. The bank’s ability to complete foreclosure cases will ultimately result in a great increase in the inventory of properties on the market as the “shadow inventory” of homes held up in the foreclosure process will start to be available for sale. How the anticipated increase in inventory will affect real estate prices remains to be seen.
The new legislation would lessen the amount of time that a bank can go after a homeowner for unpaid mortgage debt, call for senior judges to hear foreclosure cases and restrict owners whose homes were wrongfully foreclosed on from reclaiming them if a third party has purchased them.The legislation also expedites the process by requiring a judge to immediately review any foreclosure filings in chambers without a hearing, before asking the parties to show cause why a final judgment should be entered.That process allows the judge to enter a final judgment quickly if the lender feels the borrower has no defense. But if a homeowner believes he or she has a case, a judge will be required to hear the homeowner’s case.
If the bill is signed into law by Governor Scott, we can expect to see significant movement in clearing the foreclosure case backlog. The bank’s ability to complete foreclosure cases will ultimately result in a great increase in the inventory of properties on the market as the “shadow inventory” of homes held up in the foreclosure process will start to be available for sale. How the anticipated increase in inventory will affect real estate prices remains to be seen.
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