This is a great move for the state of Florida! Just signed on Friday by Governor Rick Scott, a bill that speeds the foreclosure process on Florida mortgages. Sponsored by Rep. Kathleen Passidomo, the new law reduces the amount of time that banks can collect on losses (like deficiency judgments) from five years down to one year; requires that the foreclosing banks provide the note (a hotly contested issue) at the time of the foreclosure; and allows homeowners and condominium associations to start the foreclosure process. Now lenders have to prove that they have an ownership interest in the property and if someone purchases a property without knowing that there are clouds on title such as a previous owner may have an interest, the new Florida foreclosures bill has protections for them as well.
Judges are now required to immediately review Florida foreclosure filings in chambers, no hearing needed, and then ask the bank and homeowner to tell them why a final judgment should or should not be issued by the court. This lets the process go much faster especially if the borrower doesn’t have a defense or legitimate reason for the foreclosure to not go forward. However, if it appears that the homeowner may have a case, judges are required to hear that case and make a judgment on the merits of the defenses.
Florida has one of the longest foreclosure periods in the country at almost 900 days which causes properties to stagnate, decline, and diminish the values of the non-delinquent homeowners who own properties near them. This allows the state of Florida and Naples real estate to continue to recover and gets abandoned homes back into play with owners (whether bank or not) taking care of the properties and expediting the sale. It also helps those who are in the process of getting foreclosed on because they can now work on repairing their credit scores and financial records.
Foreclosures in southwest Florida are at a much lower level and more competitive than ever. If you’d like a list of available foreclosures in Naples, Bonita, Estero or Marco real estate, please send us an email or give us a call and we’d be happy to send that to you.
