Florida Would Soon be Introducing Non-Judicial Foreclosures

Florida would soon be introducing non-judicial foreclosures that would lead to faster and quicker completion of the process and evictions. This will be a reality if bankers have their last word. Residents of Florida facing foreclosure threats could find themselves out on the streets within three months from the start of the process.

The Florida Bankers Association consists of 400 members – a strong lender’s lobby. It is pressing for a bill that will pull down curtains on a foreclosure law that has been prevailing for decades and start off a new chapter known as non-judicial foreclosures as early as 1st July.

In a non-judicial foreclosure banks would be able to expedite the foreclosure measures against delinquent borrowers by skirting the courts. The judges would no longer preside over foreclosure suits. In 37 states this fast track foreclosure process is already operating. Some of the states are Alabama, California, Georgia and Texas. But Florida has always been noted for its stand on the rights of home owners. 

Non-judicial foreclosures have to be completed within three months. At the most it can take a year. Generally the process runs along for a year to 18 months. It can drag on more if the lawyer manages to put up a stiff fight. But with the new law the bank can take possession of the house within 90 days.
Another danger is that even after the eviction, the borrowers they can be hounded legally by the banks for unpaid balance dues that the sale of the house failed to cover. But generally the banks come to an understanding that they will not do so if the borrowers leave the house in good condition without causing damage.

There are pros and cons to the matter of non-judicial foreclosures. Those who are living free have to vacate the premises quickly and start living in rented quarters or buy another accommodation. It will pull out the shadow inventory into the light of the market and things will start moving instead of threatening and prolonging. Thus the bottom will be reached quickly in the housing sector. The borrowers would legally become free from debt responsibilities. If the banks agree to rent out the house to the previous owners then some money would trickle into their coffers and the communities would be spared the blight of vacant units. The homeowners would have a reason not to pilfer and damage the residence.