When it comes to foreclosures, there are basically three ways that states undergo the foreclosure process. First, there are judicial foreclosures that involve the state’s court to mediate the foreclosure process. Then there are non-judicial foreclosures that bypass the court. Finally, there are states that do a combination of both judicial and non-judicial processes.
Basically what you should know is that while judicial foreclosures provide more security by helping to ensure that the bank is not wrongfully foreclosing upon a property, the process takes significantly longer than non-judicial foreclosures.
When the foreclosure process is delayed due to tighter judicial requirements, then the actual effect of foreclosures throughout that state is also delayed, which is the case in Florida.
Recently there have been talks about amending and expediting the foreclosure process in Florida in an effort to combat the high foreclosure inventory that includes everything from townhouses and single family homes to multifamily homes.
Since it takes around 21 months for a foreclosure process to end in Florida, the state has yet to experience the full effects of the high number of foreclosures throughout the state. Furthermore, the shadow inventory is inhibiting economic recovery in the state. In short, Florida is currently in a mess and is dealing with the foreclosure crisis in a very slow manner; as a result, many people wish to drastically speed up the state’s foreclosure processes. Although some people support the desire to speed up the process, others remain skeptical.
Is Florida’s plan to move to a non-judicial foreclosure process unique? Not at all. In fact, approximately 30 states already conduct foreclosure processes without court interference. However, there is a fear that moving away from the court will lend itself to an increased chance of wrongful foreclosures that puts homeowners in danger of losing their homes without a legitimate reason.
In the end, there are those that desire to go ahead and experience the full effects of Florida’s foreclosure crisis by taking courts out of the mix. Their rationale is that speeding up the process will help the state move toward recovery quicker as opposed to prolonging the process. Supporters of the judicial foreclosure system disagree and believe that moving away from the court system will lend itself to unfair practices that fail to protect homeowners.
One thing is certain, the foreclosure process in Florida takes an incredibly long time-around 21 months-and the shadow inventory across the states continue to climb. Something has to be done to help alleviate the continuing stress on Florida and its residents.