Florida Lawmakers Discuss Fast Track Foreclosure Bill
Florida Lawmakers Discuss Fast Track Foreclosure Bill
Florida lawmakers will soon discuss a fast-track foreclosure bill meant to hasten the legal process and reduce a mammoth court backlog of foreclosures. If you feel like this is Groundhog’s Day, you’re not alone. This is the fourth consecutive session in which this issue has been brought up for legislative debate, and Boca Raton home owners are hopeful that an agreement can finally be reached.
The proposal (HB 87) houses a provision that would reduce the time that banks have to recoup money owed on unpaid mortgage debt from five years to one, something that consumers applaud and support. The bill, which was filed by Rep. Kathleen Passidomo, R-Naples, has been in deliberation for years, and the newest version has eliminated some of the language that was most resisted by Boca Raton home owners in the past.
While supporters of the bill are hopeful they can get it pushed through this time, there are still consumer advocates who oppose the 19-page plan. They say there are still too few protections for home owners, most notably a provision that would give a judge discretion regarding whether or not to fast-track a foreclosure. Opponents of this particular aspect say they wouldn’t have time to gather a defense under this part of the bill.
Dubbed the “show cause,” the provision would give a judge leeway to demand that a home owner prove why a foreclosure judgment should not be levied against them if the bank’s documentation is in order. And if a judge doesn’t agree that the home owner has a legitimate defense, they could issue a foreclosure judgment immediately.
Adds Lynn Drysdale, an attorney with Jacksonville Area Legal Aid, “It completely wipes out the ability to engage in discovery and get information from the other side. I laud the representative for trying to address a very difficult problem, but I think that some of the provisions in the bill aren’t as protective of the rights of home owners as they are of banks.”
In Florida, the real estate market is unique in that banks must get a judge’s approval before they’re able to repossess a home. There are about 20 states in the country with similar laws and regulations. But Florida now has a backlog of foreclosures pending, and the average foreclosure timeline is more than two years long. According to a third quarter report from the Mortgage Bankers Association, 13% of Florida mortgages are in foreclosure with another 4% that are 90 days or more late on payments. The hope is to create a bill that is both fair to banks and South Florida home owners.
“We’ve got to get through this cycle for the economy to improve,” said Pete Dunbar, legislative counsel for the Real Property Probate and Trust Law section of the Florida Bar. “I would say this bill is improved significantly because ideas that became controversial in last year’s bill are not in this one.”
To learn more about Boca Raton Short Sales, Boca Raton Foreclosures and Boca Raton homes for sale, please contact our local team of real estate agents.
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