Florida has taken steps to ensure that homes put under foreclosure or distressed property auction meet all the criteria for a foreclosure. The Supreme Court has clarified certain rules governing foreclosures to make sure lenders and banks take over houses only in a proper and legal manner.
Foreclosures remain high in Florida, with local statistics contributing to the state-wide problem. The high number of Pompano Beach distressed properties and foreclosures in several other counties contribute to the problem of properly monitoring the process of foreclosure in every corner of the state.
According to a review of several cases that include Sarasota and Manatee, a number of lender and bank lawyers have ignored the rule requiring them to verify the accuracy of documents and allegations in foreclosure cases. The rule was issued by the high court and violation of it can result in a perjury penalty.
Several cases of foreclosures and distressed properties in Florida have been thrown out by local courts because of violations of the high court rule, but lawyers have claimed that the rule is not yet legally in effect. The high court ruling was established in February.
The high court has responded to this claim by stating that lawyers should immediately adopt the required verification process before putting homes in a distressed property auction. According to the court, the rule is part of an effort to lower the number of foreclosures in the state and to also cut down on the foreclosure cases being handled by local courts.
Real estate analysts have stated that the confusion over the rule shows how the high number of distressed properties for sale is making it difficult for foreclosure courts to handle the numerous cases that are put under their care. The confusion, in turn, affects homeowners since some of them can have their homes retaken by lenders even when they are not entitled to retake these properties.
In addition, incomplete and poor filing procedures contribute to the waste of judicial resources. Analysts have also stated that the problem with the legal process involved in a distressed property auction or foreclosure also hinders the recovery of the state’s housing market by holding back property resales.