In previous posts we have discussed the state of Florida's use of judicial foreclosures. Under this procedure, foreclosures go through the court system. Currently in the state, all foreclosures in the state go through this. As a result, the duration of foreclosures is longer than nearly all others and there is a large backlog waiting to be attended to. A RealtyTrac report from November 2011 indicated it takes an average of 749 days for the foreclosure process to be completed.

Florida is one of 20 that only use the judicial foreclosure process. Many other states throughout the nation utilize the nonjudicial process. The process removes the need for a judge to sign off on the foreclosure and is generally a much faster and cheaper process. In addition, because the duration is shorter, homes are quickly put back on the market rather than sitting empty and unattended. This may in turn help the economy.

Now, a legislator from Naples is seeking to change the way foreclosures are handled in Florida in hopes of lowering that duration. She has sponsored legislation that she says seeks to do three things. First, streamline the process. Second, keep the process in the court system. Last, protect the rights of homeowners.

Known as House Bill 213, not all Florida residents are in favor of it. Many members of watchdog groups, homeowners and legal professionals are afraid that the bill will ultimately pave the way for nonjudicial foreclosure. They are against this as they fear is will remove a defendant's right to a day in court. Apparently the phrase "nonjudicial foreclosure" is not found anywhere within the language of the bill.

Whether the legislation ultimately becomes law remains to be seen. We will post any relevant developments as they become available.

Source: news-press.com, "Florida bill seeks to hasten foreclosures," Mary Wozniak, Feb. 5, 2012