Foreclosure filings seem to be ramping up again in Miami Dade County

As reported in the Miami Herald by Toluse Olorunnipa, foreclosure filings seem to be ramping up again in Miami Dade County.

As reported, “New reports from two industry trackers indicate that lenders are beginning to speed up their home-repossession practice, which has been hampered due to last year’s “robo-signing” scandal. Third-quarter foreclosure filings rose 13.2 percent to 9,170 in Miami-Dade County, compared to the previous quarter, according to data released Thursday by real estate research firm RealtyTrac.”

Foreclosure filings were slowed down when information surfaced that many lenders and law firms were not properly reviewing the documentation needed to properly prosecute foreclosures. Many lenders were using what eventually came to be known as “robo-signers,” essentially people who were signing away important legal documents without having the proper knowledge or conducting a proper investigation into the contents of the documents they were signing. 

Under Florida law, a bank can only repossess a home after they have filed a foreclosure complaint and presented the proper documentation supporting their allegations that the bank is the holder or owner of the promissory note, that the borrower is in default, and any other supporting documentation that may be required under the law. Once they receive a final judgment of foreclosure, a foreclosure sale will be conducted in where the bank can bid for the defaulted home.

As the Miami Herald reports, “According to data from RealAuction.com, which hosts the county foreclosure auctions for Miami-Dade and Broward, October auctions are up more than 200 percent from September. In Miami-Dade County, for example, the number of scheduled auctions jumped from 667 in September to 2,077 in October.”

As more foreclosure filings are seen in court, more oversight is needed in order to ensure that the lenders and law firms are properly producing and filing the correct documentation. Further, with more foreclosure filings come more cases on the court’s dockets that may eventually add to the already backlogged dockets in Miami-Dade county courts.

As the Miami-Herald reports, help is on the way, as on “On Wednesday, Gov. Rick Scott approved a $45.6 million loan for the state courts system, funds that can be used to help whittle down the large backlog of foreclosure cases stuck in court. The court funding, combined with more aggressive lenders, could lead to faster foreclosures going forward.” Money should also be placed in ensuring that Plaintiff’s, i.e. lenders, and their attorneys are following the proper procedure in foreclosure cases. This in essence would also alleviate the backlog as filings will be prosecute with the proper amount of due diligence.

Eduardo D. Fons, Esq.