Lawmakers, banks want to speed foreclosures

TALLAHASSEE - A bill is winding through the Florida legislature that would let banks foreclose and take away your home within months, and without going to court.

The pool of homeowners desperate for help is growing. While many face foreclosure, others have already abandoned the home of their dreams.

Just last month, President Obama expanded programs to keep residents in their homes, but Florida lawmakers are considering a bill that would do the exact opposite: it would fast-track foreclosures so the bank doesn't even need to file a lawsuit or go to court.

"The sheriff could show up and say to the homeowner, 'your house has been lost to foreclosure, you've got 24 hours to get out of there.' It can be just that severe," said attorney Charlie Gallagher.

Under Florida law, lenders must file a foreclosure lawsuit, giving homeowners a chance to defend themselves.

Last year, Florida's Supreme Court even ordered banks to mediate first before going to court.
Gallagher said the legislation would undo those protections.

"The whole idea behind the Supreme Court requiring mediation would be totally lost," he said.
The net result is that a simple notice from the bank would be all that's required.

"Right now, with the courts, they have some time to marshal some assets and try to re-write or modify the loan, but this new act would accelerate the process so quickly—within 90 days they could lose their house," Gallagher said.

The Florida Bankers Association defends the bill. Executive vice president Anthony DiMarco said, if passed, the act would provide "an efficient streamlined alternative process for foreclosure."

He says that is necessary because "the Florida court system is overburdened with foreclosure filings," with many taking 18 to 24 months to go through the system.

Others point to neighborhoods filled with overgrown lawns and badly kept homes left in limbo through the process.

But Gallagher points to other states which adopted similar laws, citing families unfairly made homeless.

"There are plenty of horror stories. They should not have been foreclosed, next thing you know, they're being told the leave the house in 24 hours," Gallagher said.

He and others feel the bill sacrifices due process rights for the sake of reducing judicial backlog, and the number of neighborhood eyesores.

The proposal is in committee right now in the House & Senate, and could be voted on by the end of session.