Florida Bankers want Non-Judicial Foreclosures

This information was used with permission from the office of Yesner & Boss, PL. http://www.yesnerboss.com/

Florida Bankers Push For Non-Judicial Foreclosures
The Florida Bankers Association (FBA), a lobbying group representing banking institutions across the sunshine state, has presented a new bill to Florida’s Congress aimed at accelerating the foreclosure process. The bill, ironically titled The Florida Consumer Protection and Homeowner Credit Rehabilitation Act, would shift state property laws and establish “non-judicial” foreclosures as early as July 1. The idea is simple: banks would be able to expedite foreclosures against defaulting homeowners by removing the court system from the equation. Judges would no longer rule on foreclosure cases, effectively eliminating the judicial process from foreclosure law.

There are some issues, both legal and practical, with installing such a system. The first glaring issue is the elimination of due process – a constitutional right to every Floridian. However, there are other states that have installed such a plan including Alabama, California, Georgia and Texas. Unlike the other 37 states who have adopted this “fast-track foreclosure authority”, Florida has historically had very powerful homeowner rights which would be in direct conflict with the idea of non-judicial foreclosures.

Some of the many points highlighted in the 53-page bill include:
Non-judicial foreclosures must conclude in no less than three months and no more than a year. With proper legal assistance, Florida foreclosures can take a year to 18 months to work through the courts. The new bill would mean banks can theoretically auction the home out from under you within 90 days.

The Florida Supreme Court's newly endorsed mandatory mediation for lenders and homeowners would effectively be revoked. The proposed bill provides only for informal meetings between creditors and debtors.

Even after homeowners are evicted, banks would still pursue them for unpaid mortgage debt. However, banks will waive that right if homeowners avoid trashing or stripping the house before the new owner takes over.

Clearly, the bill is very raw and still needs a lot of work, but the writing is on the wall – financially strapped Florida homeowners beware.
The FBA has a list of reasons why the bill makes sense including avoiding abandoned houses staying vacant for long periods of time, preventing further congestion of state courts, and assist cities dealing with increased urban blight. FBA president, Alex Sanchez, was noted as saying “We don’t want the property. We want to get a property out of the courts and sold to a productive Florida family.”

The bill, if passed, would apply to foreclosures filed after July 1, meaning cases already in the courts would not be removed. If you have any questions regarding this or any foreclosure related issue, please contact an attorney at Yesner & Boss, P.L. at 888-282-2110.
-Paul M. Silvestri, Esq.
Yesner & Boss, P.L.