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Florida Foreclosure Homes Process Streamlined

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By : John Cutts    99 or more times read
The Florida Supreme Court Task Force on Residential Mortgage Foreclosure Cases has released a report in which it streamlined the Florida foreclosure homes process.

In March 2009, a court order stated that several Florida circuits implemented various approaches to effectively manage, deal and process all the foreclosure cases. The court order pointed out that the said task force must develop and recommend procedures, strategies and policies that circuit courts could implement statewide.

According to the task force report, homestead and borrower-occupied properties may obtain a high success rate for loan modification. Additionally, the report developed a fast-track procedure for walk-away or vacant properties. This means that Florida foreclosure homes will be moved immediately through the repossession procedure toward sale and occupancy.

Furthermore, the task force suggested that properties such as tenant-occupied houses be given the option for managed mediation in order to simplify the negotiation between lenders and borrowers.

Meanwhile, the task force report also requires plaintiffs to ask the property occupants whether they know how to contact the property borrower or the landlord that receives the rental payments.

According to industry experts, the task force has made managed mediation mandatory before the final hearing in foreclosure cases. This is to ensure that requirements for both Home Affordable Modification Program (HAMP) and Troubled Asset Relief Program (TARP) are met.

Experts explained that HAMP has been using TARP funds as capped incentives for servicers to encourage them to modify loans. They added that the managed mediation program attempts to assist defendants who are having difficulty contacting the plaintiffs.

According to the task force report, borrowers participating in managed mediation are required to receive certified foreclosure and financial counseling.

Meanwhile, the task force also recommended that all parties involved are not allowed to unilaterally cancel sales of distressed properties that have been set in the court, unless a valid explanation has been given. If the explanation has been accepted, the sale will be rescheduled at an agreed time.

Results of the Consumer Mortgage Audit Centers survey showed that 66 percent of lawyers in Florida believed that many predatory lending and mortgage violations would be tracked by next year. The survey also showed that 64 percent of mortgage violations were not noticed first by homeowners.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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