Are the Faster Florida Foreclosures Actually Slowing Things Down?

by Isaac Benmergui, Esq on November 13, 2013

The statistics say, “yes!”, unfortunately. It was recently shown here in the Florida courts that when this controversial law about the ‘faster foreclosures’ took effect back in July, over 4K new foreclosures came through, a dramatic drop of 70% below the sunshine state’s average of about 15K per month.

Why is that? It seems to be a counterproductive result – faster foreclosures, but less foreclosures going through? If you Untitled1were to even look at the areas of Hillsborough, Pinellas and Pasco counties, that plunge hit an amazing low at only 465 compared to the standard average banks have been shelling out at more than 2K per month. What’s the problem?

This might surprise you: it’s all about the process. Real estate law can be complex, especially when you introduce a new law into the mix. Essentially, this new law demands that banks show evidence of ownership of these particular mortgages. Once it’s shown that they essentially have the right to foreclose, the result is a much quicker case. There’s a slight problem with that, though; banks are struggling to adjust to this new process. The new rules are causing banks to really slow down and take pause, ensuring they’re headed in the right direction.

Real estate law can be notorious for that. Once there’s a change in legal proceedings, it would take some serious time to get everything going on smooth sailing. That is how it is with the law anyway, don’t you think?

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