Stake Your Claim to a Prime Spot Under the Bridge.

I hope that the state of Florida has kept the bridges in good repair, because an increasing number of families will soon be living under them. Thank you, Governor Rick Scott. The governor could not find it in his heart to veto the so called foreclosure reform bill that is set to expedite Florida foreclosures. In that same bill - House Bill 87 - which was signed into law on June 7, is a provision that makes it easier for landlords to evict their tenants. So between the expedited foreclosures and the easier evictions -- space under the bridges will be at a premium. Welcome to Florida.

An article on the Florida Bar's site - "Plan in Place to Work Foreclosure Backlog" by Gary Blankenship -   which is dated, June 1, 2013, but which was actually published several days prior to June 1 shows a partial break down of how the money is being allocated. (I found the article a few days prior to June 1, and found it so interesting that this article predicting the governor's signing of the Foreclosure Reform Bill appeared before the date displayed. They must have a powerful crystal ball!) The Florida Bar article states:

"The Office of the State Courts Administrator broke down the authorized spending:

* It includes $16 million for the courts to pay for increased use of senior judges, general magistrates, and case managers to help dispose of foreclosures. Another $5.3 million was allocated to the state courts system to pay for technology to help handle foreclosures. Those monies can be spent over two years.

* A total of $9.3 million is designated for county clerks of courts to help courts with foreclosure paperwork.

* Another $10 million is set aside for legal aid agencies to help low- and moderate-income homeowners threatened with foreclosure."

Apparently the foreclosure courts, in an effort to expedite the proceedings, are taking a page from family court in using general magistrates. In family court general magistrates are attorneys appointed by the chief judge to hear uncontested matters. And if history is any indicator, those hearings are not as fair as they might be. Read more - Baby Mama Drama? You can make it stop.

And now for the homeowner in foreclosure the rules just got harder to follow and understand. The Bill Analysis explains the Show Cause Procedure as follows:

"Show Cause Procedure

The bill makes several revisions to the show cause process. The bill provides that after filing a complaint, the plaintiff may request an order to show cause for the entry of final judgment, and the court must immediately review the request and the court file in chambers without a hearing. If the complaint is verified, complies with the requirements in s. 702.015, F.S., and alleges a cause of action to foreclose on real property, the court must issue an order to show cause why a final judgment of foreclosure should not be entered to the other parties named in the action. The bill adds a number of elements that must be included in the court’s order to show cause that is sent to the other parties named in the action. The court must set a hearing no sooner than the later of 20 days after service of the order to show cause or 45 days after service of the initial complaint. The hearing is no longer required to be held within 60 days of the date of service, as required by current law. The bill specifies that the Legislature intends that the alternative show cause procedure may run simultaneously with other court proceedings." 

  

And the Florida Bar article quoted and linked above also states:

"Show cause hearings in foreclosure cases will use the summary judgment standards to speed the resolution of foreclosure cases, and at those hearings defendants will have to claim a specific, allowable defense to forestall the foreclosure. Critics of the bill said defendants would have inadequate time to conduct discovery, noting in other civil cases summary judgment comes well into the case and after discovery..."

And the Florida Bar article continues to say:

"Critics said it rewarded banks which had flooded the courts with faulty paperwork and limited the ability of homeowners to defend a foreclosure. They argued that there would be no untimely delays if banks filed the proper paperwork and pursued cases instead of letting them languish."

You're preaching to the choir. Homeowners whose foreclosures have been dormant for years are now receiving notices to appear in court, often for a hearing on the plaintiff's motion for summary judgment and attorneys fees. For the years that the foreclosure action was languishing in legal limbo due to the inaction of Plaintiffs, attorneys fees, late payment fees, and unpaid mortgage payments have grown to insurmountable levels. 

 

Its going to get crowded underneath the bridge.