Florida bankruptcy courts have been busy processing thousands of foreclosure cases since the height of the mortgage crisis. Still backlogged from so many active foreclosures, a new bill has been presented to the State of Florida to help unclog the process.
Faster Foreclosures?
As a judicial foreclosure state, the one thing that Floridians have in their favor is that no lender can foreclose without first obtaining permission of the court. Unlike other states, the judicial foreclosure laws allow homeowners more time to seek help with their impending foreclosures; often as much as five or more months. However, in efforts to alleviate the backlog of already active foreclosures, new legislature is pushing for the process to be streamlined for future transactions.
House Bill 87 is calling for expedited foreclosures and the tightening up of filing standards for banks; presumably to allow for lenders to process foreclosed properties quicker, but only after a strict protocol has been met. While some view the bill as necessary means for continuing the, albeit slow, recovery of Florida’s housing market, others argue that the bill is likely to lead to increased problems with predatory lending and borrower insolvency.