Consumer Law

More Florida Foreclosure Problems

By M. Stan Herring

Our friend Denise Richardson, of givemebackmycredit.com, has posted an article that highlights some of the foreclosure problems that have been happening all over the country, specifically in Florida, which has been hit with above average numbers of foreclosure and fraud. Homeowners in Florida have had to deal with several unnecessary issues, such as bank accounting errors and mortgage board practices, when facing foreclosure.

Florida lenders are looking to speed up the foreclosing process and claim that dragging out the process is "time-consuming and expensive."

If members of the Florida Banker's Association have their way, homeowners facing foreclosure could have as little as three months before having to leave their homes. That isn't much time considering it takes at least that long to modify or refinance a loan -or simply try to clean up erroneous credit reporting caused by mortgage servicing abuses.

This means that homeowners will have a more difficult time and a much smaller time span to prove to lenders that the foreclosure proceedings were started illegally and/or due to error, misinformation or through deceptive practices.

Defaulting homeowners are going to be unfairly pushed through an accelerated foreclosure process. Responsible homeowners who have arranged loan modifications with their lenders, but who have been lost in a sea of red tape, will be at risk of losing their homes if they don't have the proper amount of time to prove their innocence -or that they are in good standing on their loans. This shouldn't happen.

Banks would use a non-judicial method to push foreclosures through so quickly. This type of proceeding bypasses judges, legal courts and also doesn't give enough time for the homeowner to prove that they are being foreclosed on unfairly. This method would take from 90-120 days to completely foreclose.

The Florida Consumer Protection and Homeowner Credit Rehabilitation Act currently being perused by state lawmakers would give lenders the right to go after homeowners for unpaid mortgage debt even after they have been evicted. While banks have that right, they can opt not to exercise it. This is small comfort for the homeowners who can no longer rely on mandatory mediation since the new bill totally bumps that concept right out of the picture.

If you would like more information on foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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Full post as published by Alabama Consumer Blog on March 10, 2010 (boomark / email).