New Foreclosure Law Streamlines Process

By  //  June 12, 2013

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who actually benefits the most?

ABOVE VIDEO: “The fast track foreclosure bill is wrong and violates the due process rights of the good citizens of Florida,” according to attorney Justin Clark of Gregory & Clark.

BREVARD COUNTY, FLORIDA – The foreclosure process in Florida can be extremely time consuming. However, thanks to Gov. Rick Scott, the amount of time it takes to actually foreclose on a mortgage may become shorter.

Gov. Rick Scott

Gov. Rick Scott

“Florida’s housing market is important to our economy’s continuous recovery and this bill will aid in that effort by placing abandoned homes, caught up in the foreclosure process, back onto the market,” wrote Scott in the bill-signing letter for HB 87, sponsored by Rep. Kathleen Passidomo (R-Naples).

“This process will put these homes back onto the housing market and allow Florida families who have experienced a foreclosure to begin working to repair their credit and finances.”

The new law brings more certainty to the state’s housing market, the governor added. It took effect immediately after Scott signed it.

Florida’s foreclosure process now takes about 853 days, which is more than twice the national average. In sponsoring HB 87 earlier this year, Passidomo noted that it maintains the due-process rights for struggling homeowners while boosting the state’s real estate recovery by getting foreclosed property “back into the stream of commerce.”

Florida’s foreclosure process now takes about 853 days, which is more than twice the national average. In sponsoring HB 87 earlier this year, Passidomo noted that it maintains the due-process rights for struggling homeowners while boosting the state’s real estate recovery by getting foreclosed property “back into the stream of commerce.”

All Florida foreclosures are different and there is no way to predict the amount of time it will take to foreclose on an individual or business.

The new law gives lenders the right to ask the court to justify why a final foreclosure order hasn’t been entered; and it also allows condominium and homeowners associations to ask the court to speed the process along where appropriate.

Consumer interests are addressed in several provisions including:

• Requiring lenders to prove in detail that they own the loan for a property before foreclosing on it,
• Reducing the time lenders can seek deficiency judgments from five years to one year,
• Providing protections for innocent parties who purchase a property without knowledge that a previous owner may have a claim to the property.

A deficiency judgment refers to the difference between what the original owner still owes on a mortgage and the money received from selling a foreclosed property.

But is this new bill actually good for struggling homeowners?

“The fast track foreclosure bill is wrong and violates the due process rights of the good citizens of Florida,” according to attorney Justin Clark of Gregory & Clark.

Justin Clark

Justin Clark

“Just as the banks are being punished to the tune of 30 billion dollars by the federal government for defrauding us, Governor Scott and the Florida Legislature rewards them all by allowing a foreclosure process of as little as 45 days. The law also states that even if your house is foreclosed on fraudulently, you can not get your home back. Everyone knows short sales cannot happen in 45 days, thus this law is going to send the vast majority of people into foreclosure or bankruptcy.

“This in turn only hurts the banks, because they make money by lending money, and anyone in bankruptcy or foreclosure cannot get financing for much longer than someone who does a short sale. Sounds to me like leader of Florida and the banks are stumbling all over each other.

I agree with Justin Clark’s opinion. This will have a negative affect on home owners hoping to short sale their home and move forward with their lives if banks and HOAs are allowed to speed up the foreclosure process.

“Lastly, pay your HOA dues no matter what you do. This law allows HOA’s to have even more power, and now they have the power to force the bank to foreclose on you within 45 days” said Clark.

I agree with Justin Clark’s opinion. This will have a negative affect on home owners hoping to short sale their home and move forward with their lives if banks and HOAs are allowed to speed up the foreclosure process.

So who actually benefits the most from this new bill the  Governor just signed? Struggling homeowners  the banks or HOAs?

ABOUT THE AUTHOR

Freeman

Bobby Freeman, a life-time resident of Brevard County, has been a top Realtor in the area for two decades. In his first year as an agent, Freeman received a Rising Star award from his Brokers. Since then he has achieved numerous sales awards and has recently been presented with the prestigious RE/MAX Hall of Fame Award.

Freeman, Jennifer McCoy and Nikki McCoy Freeman are family partners for RE/MAX Elite’s McCoy-Freeman Group. Together they have more than 30 years of extensive experience in all aspects of the real estate industry and have sold over $180 million. Among McCoy-Freeman Group’s achievement are RE/MAX Hall of Fame, RE/MAX 100% Club, Certified Distressed Property Experts (CDPE), Accredited Buyer’s Representative (ABR) and voted Best Realtor in Brevard County. The group has been featured in many news publications including CNN Money Magazine, CNNMoney.com, WFTV 9 ABC News, Coastal Condo Living, & Hot Retirement Towns Magazine and SpaceCoastDaily.com.

For more information log on to BrevardRealtyConnection.com


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