By: Douglas L. Waldorf
The Florida Bar News, in its September 15, 2014 edition, reported that Florida foreclosure volume has declined with the number of filings in the first half of 2014 about 50% of filings for the same period the year prior. The backlog has also been reduced to about one half that of the prior year. Some attribute the reduction in filings to the new foreclosure laws passed in July of 2013. Generally, the new law requires more front-end due diligence by lenders to ensure that they have the legal right to foreclose. This may, in fact, have caused an increase in internal scrutiny of loan documents resulting in the delay or postponement of foreclosure filings. Overall, we have an improved economy and corresponding willingness of banks to modify loans rather than foreclosing them and this may also be a factor in the reduction in foreclosures. It should be noted that Florida is still at the top in comparison to other states in pending foreclosure cases with a backlog still at some 185,000 cases.