There was an interesting article in yesterday's Palm Beach Post on a new bill being introduced to the Florida Senate to streamline foreclosures.
A quickie foreclosure bill that would require a homeowner to present a
sound defense or face an immediate judgment in some cases moved closer
to a full legislative hearing Monday with the blessing of the Senate
Monday's vote marked the farthest a proposal
to streamline Florida's strained foreclosure process has advanced in the
Legislature since the housing collapse, but it's in no way a done deal,
lawmakers and lobbyists say.
The 5-2 approval of Senate Bill 1890
came with hesitation from some committee members and firm opposition
from homeowners and foreclosure defense attorneys. One man, who called
the sponsors of the bill a "disgrace" during public comment, brought
blown-up images of his own foreclosure documents that he said show
evidence of fraud.
The plan, which contains some consumer
protection language, such as reducing the time a bank could pursue a
homeowner for unpaid mortgage debt from five years to one year, has
earned support from the Real Property Probate and Trust Law section of
the Florida Bar.
But the Florida Bankers Association has yet to take a position, and it is flatly opposed by the Florida Consumer Action Network.
This proposed bill is bit scary as it puts us that
much closer to changing our state from a judicial state to a
non-judicial one where owners of real estate have no real property
rights if they fall behind. They talk about title or notes in this and
the question is does anyone really know who owns most of these loans?
With all of the securitization of mortgages and the rampant fraud with
the robo-signing fiasco who is to say that the lenders will not try to pull the same again? This time they add a process under this bill to
speed it up.
Yes, granted the statute of limitations will be reduced from five years to one year for anyone to seek a deficiency judgment
but how will this affect short sales?
Will banks and servicers be
harder to deal with in regards to the short falls in a short sale? If so
this bill could have a reverse effect on the problem at hand making
many potential short sales back into foreclosures.
All of this is still in the preliminary stages but it's worth watching it.
your local representative in the State Senate (I've provided contact information below for the Treasure Coast area) and let them know you aren’t crazy
about speeding up a process that will give an advantage to corporations
that have already shown they will cut corners and laws no matter what to
gain an advantage. The ink isn’t even dry on the $26B settlement that
had to do with the massive fraud the largest lenders and banks in the
country committed on the public and the courts and now we want to help
speed things up for them? I know that the situation must improve and
that the courts can’t keep up with the tide of foreclosures but there
are things in place to make that better already. Just enforce those and
stop making more programs and laws.
do you think? If you need assistance in dealing with a distress sale or
a traditional sale I can help. Just take the first step!
If you would like to read SB1890 you can do so here:
And you can follow the progression of the bill here
Senator Joe Negron (R) (District 28 for Martin, and parts of Indian River, Okeechobee, Palm Beach, and St. Lucie counties)
Senator Mike Haridopolos (R) (District 26 for Brevard, Indian River, Osceola, and St. Lucie counties)