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Faster foreclosures bill clears House in 87-26 vote

A bill to speed up Florida’s groggy foreclosure system was approved by the Florida House on Monday after a 87-26 vote.

The third attempt at foreclosure reform in three years, HB 87 creates new options for expedited foreclosures and tightens up filing standards for banks. A companion bill in the Senate stalled in the committee process.

Opponents claimed HB 87 would harm homeowners and favor banks, who have been accused of engaging in questionable foreclosure practices.

“We’ve got to be extremely careful with regulating foreclosures,” said Rep. Jose Javier Rodriguez, D-Miami. “Many of these proposals go too far.”

Bill sponsor Rep. Kathleen Passidomo, R-Naples, said the bill would help streamline the slow foreclosure system. The mortgage foreclosure system needs to operate justly and "expeditiously" she said.

The bill would give condo associations an opportunity to speed up foreclosures by participating in a “show cause” hearing in which a judge can close out a case more quickly.

Supporters said the bill would help return Florida’s real estate market back to normalcy after six years of problems.

“Florida’s number one in foreclosures,” Rep. Charles McBurney, R-Jacksonville. “And that’s not a distinction we wish to have.”

The bill states that homeowners who lose their home in a fraudulent foreclosure cannot get it back if another party bought the property from the bank. The “show cause” provision would allow condo associations to speed up the foreclosure process on homeowners who have not paid their condo dues.

Opponents pointed to the “show cause” proposal as a potential assault on the due process rights of homeowners.

Passidomo defended the bill was a consumer-friendly attempt to clean up the foreclosure process, which has been plagued by fraud and delays.

The bill would also restrict banks’ ability to go after homeowners for additional debts after a foreclosure—cutting down the statute of limitations from five years to one year. The proposal makes banks prove they have the necessary documents before they file a foreclosure.

According to RealtyTrac, Florida ranks as the top state in the nation for foreclosures and seven of the top 10 cities in the U.S. are in Florida.

Part of the reason for the high foreclosure rate is the lengthy judicial foreclosure process in Florida, where banks must go to court to repossess a delinquent property.

Florida’s average foreclosure process takes 853 days, ranking only behind New York and New Jersey. The national average is 414 days.

Comments

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Tammy C

"The bill states that homeowners who lose their home in a fraudulent foreclosure cannot get it back if another party bought the property from the bank. The “show cause” provision would allow condo associations to speed up the foreclosure process on homeowners who have not paid their condo dues."

WOW....they even KNOW there is fraud and still continue to take our constitutional rights away from us. You all need to look up who the contributors were to these idiots campaigns....you will be surprised. No wander they want to expedite throwing people to the streets.

And don't start on me about 'pay your bills' and yadda yadda....I DID PAY MY BILLS. 6 weeks after making a regualr payment I was served. Found out that the servicer was putting my payments where THEY felt the money should go...and of course, NONE of it went to my loan payment. And just so you know, the AG office has asked me testify against one of the main foreclosure mills in FL. That was just prior to Bondi taking office. Now I am on the back burner. Hmmm, must be because of the contributors to her campaign.?

TheHutMaster

"Bill sponsor Rep. Kathleen Passidomo" MUST be jailed for her contribution to the crimes of mortgage fraud, wire fraud, and just being an evil person. Jail this gasbag today!

Deborah Orr

As we feared, the banks have gotten their unconstitutional bill through the Senate today. But all is not lost. In addition to the unconstitutionality of the law, we have learned that HB-87 was unlawfully set for hearing prior to the beginning of the legislative session in violation of Florida constitution Article III, Section 3, which restricts hearings to be held within the legislative session.

Injunctions are currently being investigated but all Florida citizens need to phone the Governor and tell him not to sign HB-87 into law.

If Governor Scott signs this into law, a massive campaign is being launched to expose the signors. All but one Democrat voted against SB 1666 and one did not vote. HB-87 was substituted for SB 1666 after a second hearing on SB 1666 yesterday. This was the 1st time that HB-87 had appeared on the Senate floor and was fraudulently identified as the third reading of SB-1666 by the Republican contingency and all republicans voted for it.

The passing of this law was both unlawful and unethical. It's time for these self-serving people who have been funded by the banks to be kicked out of their cushy offices and brought to justice for their breach of duty to protect the people of Florida.

Please call Rick Scott at (850)-488-7146 and tell the operator that you are against the Governor signing HB-87 (the unfair foreclosure bill) into law.

This is vitally important for the litigation that will ensue if the Governor passes this law. If you don't understand what this law will do to your property values, read floridarealestatestatistics.blogspot.com/2013_03_01_archive.html

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