Florida Legislature May Change Florida Law to Take Foreclosure Lawsuits Out of Florida Courtrooms: Move to Make Florida a Nonjudicial Foreclosure State

Posted By on September 29, 2011

Changing Florida foreclosure law in a big way is being considered right now, and Florida homeowners need to be aware of this growing movement.  If these efforts succeed, then the Florida Legislature will change longstanding Florida law, making it even easier for banks to do the wrong thing – since there won’t be a judge grading their paperwork.

Power Players Move to Change Florida Law So Judges Do Not Review and Approve Florida Foreclosures

There are some power players in Florida right now that want to change the state law — law that has been on the books for years — so there is no need for a bank to file a foreclosure action, which takes judges out of the loop: judges would no longer sign off on foreclosures.   Right now, Florida law requires a judge’s order approving a foreclosure before the bank can take the property.  Guess who wants this change in the law?

If you guessed the banks, you’re right.

Florida Bankers Association Would Like to Take Courts Out of the Foreclosure Process.

Many states (20 of them) do not allow their citizens to lose their homes without a courtroom being a part of that process.  Florida, along with other states like Texas, has seen fit to protect homeowners by having “judicial foreclosures.”  (Other states have “nonjudicial foreclosures,” where foreclosures are done by a notice process.)

Florida banks, spearheaded by the Florida Bankers Association, want to change Florida law. It seems that Governor Rick Scott is on board with this.  They are arguing that this will somehow help the Florida economy if they are allowed to avoid the courthouse when they go and foreclose on Florida citizens.

It’s clear that this will help the banks.  It’s not so clear how it’s going to help the Florida homeowner.

The Florida banking system has been caught doing many illegal actions:  robosigning, filing fake documents and fraud on the court.  (For more details, read our series of posts on Foreclosure Fraud.)   It is only through the judicial system’s involvement that these bad acts have come to light.

And it’s not like Florida banks are working with citizens to resolve the current crisis.  Florida banks aren’t proactive in loan modifications, for example. Have you modified your loan or have you been approved for a short sale with a bank doing business in Florida?  You’ve got a fight on your hands.

Judicial Oversight Is a Must – Foreclosure Mortgage Fraud Has Proven This to be True

It is true that Florida courts are overflowing with foreclosure filings and it would be easier on clerks and court dockets if there were nonjudicial foreclosures in Florida, especially after the end of the Rocket Docket. However, one can only wonder how much more wrongdoing will be in our future if Florida judges are removed from their role in judicial review of foreclosure actions by Florida banks.

The banking industry caused the current Mortgage Fraud crisis, not the Florida courts.  Taking the Florida judge out of the Foreclosure Fraud picture is wrong, and it’s just an invitation to even more evildoing in this state.   Robosigning was still happening this summer, long after its exposure and all the investigations began (see our post, “Robosigning Is Still Happening – Shocking Expose by Reuters Reveals Banks Are Still Filing Bad Paperwork: Foreclosure Fraud Is Not Over”) — how can taking the judges out the picture solve anything?

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