In states that already settle matters outside of the courts, homeowners are still given notice and time by lenders to settle the issue. If there is a mistake, they should be able to notify their bank and straighten out the problem, DiMarco said.
But if the bank is acting irresponsibly, DiMarco added, lawyers and judges should become involved.
That’s the point, DiMarco. The banks are NOT acting responsibly.
That is why we do not need to remove foreclosures from the courts.
Floridians facing foreclosure could lose their homes faster under plan making rounds in Tallahassee
TALLAHASSEE — Floridians facing foreclosure could be stripped of their homes faster and have routine access to the courts limited under a proposal likely to come before Gov. Rick Scott and the Legislature in the coming months.
Bankers see it as a speedy and efficient way to manage foreclosure cases and get tens of thousands of Florida properties in ownership limbo back on the market, helping pull the state out of its economic doldrums.
In contrast, foreclosure defense lawyers and consumer activists see the plan as removing judicial oversight from a system that has proven to be riddled with fraud and abuse, and leaving ordinary homeowners defenseless before some of the state’s most powerful financial interests.
“Obviously there’s a lot of fraud being perpetrated by the banks in these cases,” said Michael Redman, a Palm Beach County resident who founded the Website 4closurefraud.org to chronicle Florida’s ongoing foreclosure crisis. “At this point in the game, it’s almost ridiculous to take it out of the court system.”
But the Florida Bankers Association, which has pushed the plan over the past few years, has key allies. Scott voiced support for the proposal at a Florida Bar convention this summer and told reporters Wednesday he is still interested in it. Some lawmakers have already jumped on board.
“Well, I want to make sure that we have an efficient process, so we don’t create a reason for banks or whoever lends money not to lend money in Florida,” Scott said. “When you talk to people that are in the system now they say it’s 600 days to get through foreclosure. All that does is create another incentive for people to not lend money when we want people to lend money to our state.
“I don’t know the answer yet, but I want to look at the process,” Scott said. “I want to get more information before I make a decision.”
According to RealtyTrac, a foreclosure tracking firm, Florida had the third highest foreclosure rate in the nation and was second in the number of foreclosure cases filed in 2010. On average, the firm said, the foreclosure process takes 676 days.
Usually the lender reclaims possession; other times, homeowners get to keep their property.
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