Florida’s Speedy Foreclosure Bill Gains Momentum

by Isaac Benmergui, Esq on February 8, 2013

Risk -blocks on ball smallerA bill to speed up foreclosures throughout Florida is gaining support. Lawmakers have passed a measure that hastens the foreclosure process, which currently boasts an average 853-day process before conclusion. Consumer advocates and bankers have both voiced disapproval of the bill.

If passed, HB 87 will give lenders one year, instead of five, to obtain a judgment against the homeowner if the sale of the foreclosed home didn’t cover the balance on the loan. The lenders would also be required to have all background paperwork ready when they file a foreclosure complaint.

Pressure on Lenders Mounts

State Rep. Kathleen Passidomo, R-Naples, the bill’s sponsor said, “we’re telling the lenders, don’t bother filing the complaint unless you’ve got it right. You’ve got all the cards there so the courts can look at it.”

Passidomo’s proposal also tries to prevent banks from initiating foreclosure proceedings when the bank isn’t the true holder of the mortgage note. In the past, the house was eventually foreclosed on and sold to a new owner. The proposal would force the banks to settle the issue between themselves and not involve the new owner.

Read also: Fast Track to Foreclosure in Miami-Dade Court

“This ability to pursue the lender for whatever mistakes they’ve made is a really good deal for the borrower,” Passidomo said.

Consumer Rights at Risk?

Consumer advocates are concerned that passage of the bill could result in cases being expedited through the court system without borrowers grasping what exactly was happening. Some worry the bill could speed up the foreclosure process so much that a hearing could be scheduled within 45 days.

Opinions in the legal community vary from one foreclosure defense attorney worrying about the due-process rights of homeowners and another believing the bill is too late and would have been more helpful in 2009.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.



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