Florida foreclosure scenario is still grim. Florida is among the top three states to be hit by worst foreclosure crisis ever after Arizona, Nevada and California. According to reports, Arizona registered a fall of 21 percent in the foreclosure rate in November 2010. That is considered a biggest dip since the crisis first started to show up in 2007. However, Florida has not seen much improvement since then. Bank of America’s major non-performing mortgages are in Florida. About 20 percent of total mortgages of Bank of America in Florida State have a non-performing status.
In Florida, a mandatory judicial procedure is required to proceed with a foreclosure. As per current records, about 109,496 cases are pending with the Florida courts. This logjam and slowdown in procedures is a result of investigations and strict scrutiny that lenders are going through, currently. This has created a huge backlog with already pending cases and new cases being added every day.
Currently, if the courts have to complete their desired goal of clearing the backlog and resuming normalcy in operations, they would require clearing and disposing of at least 200 cases every day, which is an impractical task.
Other than pending cases, the number of modification programs that could have possibly helped reduce foreclosure rate has been a failure. Recent data shows only 23,348 homeowners received permanent modifications across Florida State, which is less than one third of delinquent property owners who actually received help. The three main counties of the state, Miami-Dade, Palm Beach and Broward Counties totaled up to 265,000 delinquent cases since 2007. An amount of $9.6 million was allotted to the state to help recover from these delinquent cases. However, it has been of little aid.
Since the paperwork crisis erupted during the fall of year 2009 September, there has been plethora of problems to deal with in the foreclosure market. People are suffering from extended waiting time to finish procedures related to closing of a case or getting a modification. Issues like losing documents, fraud, miscommunication, mix up of cases and closing incorrect properties pose as a never-ending dilemma for the distressed homeowners.
The lenders have been slack and careless in handling the mortgage process. Florida is a clear example of this catastrophe. Like the lenders hurried to sell mortgages during the boom time, they repeated the same mistake by hurrying to come out of the foreclosure crisis, in turn, creating more problems for themselves, homeowners and the economy.
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