Florida speeding up Foreclosures for 2012-SB 1890

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Interesting information for investors and homeowners involved in the Florida foreclosure process.

(AP) TALLAHASSEE, Fla. — A Florida Senate panel on Monday cleared a bill that aims to speed up the state’s mortgage foreclosure process, which immediately resulted in jeers from an angry crowd of foreclosure victims.

The Senate Banking and Insurance Committee OK’d the bill (SB 1890) by a 6-4 vote with some crossing of party lines. Republican Sen. Mike Fasano of New Port Richey voted against the measure, for example, and Democratic Sen. Chris Smith of Fort Lauderdale voted for it.

This is a controversial bill as many homeowners that are dealing with foreclosures feel that they are going to be shortchanged out of trying to negotiate with their lenders to try to modify their loans or find buyers by selling through a short sale.

The part causing the most distress to opponents is a section that provides for a special court hearing that would more easily speed a property into foreclosure.

Committee chair Garrett Richter responded afterward to charges that he was rushing the bill, sponsored by Republican Sen. Jack Latvala of St. Petersburg, despite concerns from some foreclosed homeowners that it “trampled” on their rights.

Some of the favorable provisions of the bill include the following as reported by CBSNews.com

— Shortening to one year the time for a bank to go after any balance owed after the foreclosure sale of an owner-occupied, one-family to four-family dwelling.

— Heightening requirements of proof that a party trying to foreclose on a property actually owns the mortgage. Banks or other finance companies would have to clearly show how a mortgage was bought and sold, or explain precisely why original documents were lost or destroyed.

— Requiring that when a mortgage is fully paid off, a written acknowledgement has to be filed in the official county records.

The 3 above mentioned provisions are a great advantage to homeowners in foreclosure. The foreclosure bill will next be debated by the full Senate, with a companion bill moving to the House floor.

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