The state with the highest foreclosure rate in the nation may experience a change in its foreclosure laws that will help speed up the process in order to reduce some of the backlog of properties making their way through the pipeline.
Florida has had the highest foreclosure rate for three consecutive months and has been one of the top-ranked states for quite some time, according to the latest foreclosure report from RealtyTrac. Two of the top five cities with the highest instances of foreclosures are in Florida – Miami and Jacksonville—according to RealtyTrac.
A bill with similar goals was introduced in the state about a year ago and met with opposition from state residents. In February, dozens of residents protested the previous law at the state capitol.
Under the newly proposed law, in order to pursue foreclosure, a mortgage lender must confirm they have all the necessary paperwork giving them the right to foreclose.
When a discrepancy occurs and a homeowner sues a lender for wrongful foreclosure, the new law allows the borrower to incur only monetary damages. Borrowers cannot reclaim their home.
The new law also has provisions for condo associations. When a condo association feels a bank is moving too slowly to pursue foreclosure, the association may take certain measures to speed up the process in order to minimize its losses.