The Florida Senate is pushing forward with a controversial bill that would expedite the lengthy foreclosure process -- which now takes more than 800 days from start to finish in Florida -- by offering fewer hearings and testimony before final judgment.
Recession-battered homeowners argue the proposed measure takes away their only avenue for recourse, and right to defend their case.
Florida is one of a few states that rely on the judicial process to settle foreclosures. The process has put a burden on the courts to the tune of 21,230 new cases in Manatee alone over the past five years, according to the clerk of court.
The GOP-driven bill also swept through the Florida House this week, but it still has several steps to go before it becomes law.
In the Senate, that means a final vote that will take place before the session closes March 9.
Because demand for foreclosed properties runs high, lawmakers say anything to expedite those efforts would only benefit the economy. More lenders and borrowers also are turning to short sales instead anyway.
Foreclosure sales across Southwest Florida rose during the fourth-quarter, according to a new report released Wednesday.
Manatee County saw its foreclosure sales activity rise just over a percent from the third-quarter to reach a total of 449 between Oct. 1 and Dec. 31.
Despite the late push, the 1,932 total foreclosures in Manatee last year remained 19 percent behind the pace of 2010 -- when the confusion from reported robo-signings stalled the entire process, according to RealtyTrac.
Foreclosures that changed hands in Manatee carried an average price tag of $130,092.
The numbers were similar in Sarasota, where the 669 fourth-quarter foreclosure sales were up 17 percent from the same time the year before. The 2,708 foreclosures over the year, however, were down 15 percent from 2010.
Foreclosures in Sarasota last year sold for an average price of $121,017.
Increased willingness by lenders to approve short sales has helped curb those numbers and will likely continue to do so this year, the report shows.
“We continued to see a shift toward pre-foreclosure sales, or short sales, and away from REO sales in the fourth quarter,” RealtyTrac CEO Brandon Moore said in a statement. “That trend will likely show up in more local markets in 2012 as lenders recognize short sales as a better option for many of their non-performing loans.”
So what do you think about the proposed changes? Does Florida's foreclosure system need a fix? And should it be up to lawmakers to get involved?
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