Foreclosure Listings Articles

Florida courts are drowning in foreclosure cases causing a massive backlog. A task force was set up to recommend suggestions for improving the system and adding more speed to it.

The most attention is likely to be given to compulsory mediation for residential foreclosures. It is being implemented in three judicial courts in Florida. By mandatory mediation conditions the lenders have to meet the borrowers to try and thrash out matters before the judge will entertain the case. In the three circuits where mediation is compulsory the plan has met with 76% success. It has a led to a good number of settlements. Till 12th October out of 1,401 cases, settlements have been reached in 1.072 instances. Ned Pope the director of the programme named CHAMP said “It’s been one of the most successful models.”

According to the mediation programme the borrowers are expected to disclose details of their finances before sitting down to meet the authorized representative of the lender and also another neutral person involved in this mediation. The fee of $750 for this mediation has to be paid by the lender.

Pope said each month the number of foreclosure cases has been growing. It spiked from 261 in May to 1,300 last June. It was over 2,200 in August. The mediators at the centre are responsible for contacting the borrower. But if the underwater borrowers walk away from the property this becomes difficult.

Many of the banks are not happy with this compulsory mediation said Barb Godin of Regions Bank. She said, “It’s rather sad that someone thinks we need this in the industry.” In Florida Regions Bank has on its portfolio $5.5 billion tied up in mortgages. It initiated a programme to assist defaulting borrowers in 2007 October. The plan was operated by 10 persons aiming to help clients in the 16 States where the bank functions. Today it has a staff of 60 running the programme. Godin said that they have assisted 5,356 borrowers in Florida.

Region Bank in Florida is facing defaults on 3.3% of its mortgages in this region. It is 17% across the states. The mortgages it has modified have a default rate of 12%.

Most of the mortgages in Florida are not for primary houses but for secondary ones. As such these are not eligible for compulsory mediation.

Ed Wilburn of Great Florida Bank opined that many lenders have been shy to proceed with loan modification because “it’s a losing proposition.” But lately the lenders are waking up to the advantages of engaging staff and money to help prevent foreclosures and have the houses occupied.

The housing advocates and homeowners battling foreclosure crowded before the State House recently to show their support for many bills that are aimed at slowing the pace of foreclosures and ensuring more equitable treatment towards the house owners and the tenants

There was a strong crowd at the hearing before the Joint Committee comprising of law makers, house owners, renters and community groups. There were also present lawyers dealing with real estate, owners of small properties and representatives from the lending industry.

Sen. Harriette Chandler (Democrat/Chandler) said “Under current state law, tenants can be evicted without just cause—leaving our most vulnerable residents on perilous ground.” Chandler was one of the main initiators of the bills trying to give protection to the tenants staying in foreclosed houses. They were being thrown out without any proper reason.

Gladys Vega of Chelsea who is community campaigner blaming the predators for this situation said, “You have to do something to help the tenants in foreclosed properties. I was proud that we were staying stable. Things were better for tenants. But it has gone downhill because tenants have to leave the properties.”

Proposals in the bills are being made for putting into operation foreclosure mediation by which the owners would have the right to talk directly with the lenders. Further there would be six months hold on foreclosures for the allowing of time to discuss and put into effect modification. Another proposal was the passing of an act that would necessitate the sanction of the court before proceeding with the foreclosure process.

Those speaking on behalf of the bill for judicial foreclosure quoted the recent ruling given by Justice Long in Massachusetts Land Court that had led to the invalidation of two foreclosures in Springfield. The judge had said that it was not clear at the time of filing the foreclosure who was the owner of the loan. This decision has the potential to put thousan

Despite incentives offered to servicers regarding modification, foreclosures that could have been avoided continue. According to recent reports the banks are not extending relief to the harassed borrowers.
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The US is in the grip of a deep recession. As unemployment reaches its zenith, people are faltering on mortgage payments. Hence, foreclosures are common. Now there is a demand for low-end foreclosed properties in St. Paul. In August, there were a total of 1,811 vacant spaces in the area. This means a decline of [...]

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