Local judge says borrowers, lenders must see eye to eye
MANATEE COUNTY, Fla. – Nov. 18, 2008 – With foreclosure cases swamping local courts, the area’s top judge is planning a novel approach: Forcing lenders to talk with borrowers.
Saying he wants to break “the wall of silence” between lenders and homeowners, 12th Circuit Chief Judge Lee Haworth soon will require them to discuss possible ways of avoiding foreclosure before it actually happens.
“Forcing the parties to slow down and discuss possible solutions is a good thing,” he said Monday.
The new Homestead Foreclosure Conciliation Program likely is the first of its kind in Florida, Haworth said.
The program applies to foreclosure suits filed on or after Dec. 1 against homesteaded residential properties in Manatee, Sarasota and DeSoto counties.
When they file a foreclosure suit, lenders’ attorneys will be required to invite homeowners to a “conciliation conference” to discuss possible alternatives to foreclosure such as restructuring the loan, modifying payments or arranging a short sale. The offer can only be made to owners who live in the homesteaded property, not renters or investors.
The invitation also must notify homeowners that they can contact Legal Aid of Manasota to see if they qualify for assistance.
If the homeowner agrees to a conference, it must be held within 45 days and include the homeowner and his attorney, if he has one; the lender’s attorney; and a lender representative – who can be its attorney – who is authorized to agree to any foreclosure alternative.
If no agreement is reached, or the homeowner decides not to participate, the lender’s attorney can proceed with the foreclosure case but must certify that a conference was held or attempted before getting a foreclosure order.
Haworth said he created the program after hearing repeated complaints about the lack of communication among parties in foreclosure suits.
“The judges and the attorneys were telling me there was a serious disconnect between lenders and their attorneys and homeowners,” he said. “The purpose of the conciliation conference is to break through that wall of silence.”
That wall exists largely because just a handful of “foreclosure mills” file the majority of local foreclosure cases even though those law firms are based elsewhere in Florida, a Sarasota real-estate attorney said.
“Corresponding with lenders’ attorneys is virtually impossible because they have such a huge volume,” said Nancy Cason, who has represented both lenders and defendants in foreclosure cases. “It’s like an assembly line. One lawyer will file, another will take over, and so on.”
Those attorneys’ heavy workloads often result in missed court proceedings conducted over the telephone, causing delays and frustrating local judges, Haworth said.
That’s why Haworth also is requiring law firms that have filed five or more local foreclosure suits since 2006 to designate a primary contact person by Jan. 1. Haworth also will require foreclosure suits to be filed electronically beginning Dec. 1.
He hopes the changes reduce the number of foreclosed homes and help clear clogged court dockets.
“We’re going to push this thing as hard as we can,” he said. “There’s going to be some bumps along the road, to be sure. We’re breaking new ground here.”
The Orlando Foreclosure Expo Feb 7th & 8th
www.foreclosuresexpo.com
Saying he wants to break “the wall of silence” between lenders and homeowners, 12th Circuit Chief Judge Lee Haworth soon will require them to discuss possible ways of avoiding foreclosure before it actually happens.
“Forcing the parties to slow down and discuss possible solutions is a good thing,” he said Monday.
The new Homestead Foreclosure Conciliation Program likely is the first of its kind in Florida, Haworth said.
The program applies to foreclosure suits filed on or after Dec. 1 against homesteaded residential properties in Manatee, Sarasota and DeSoto counties.
When they file a foreclosure suit, lenders’ attorneys will be required to invite homeowners to a “conciliation conference” to discuss possible alternatives to foreclosure such as restructuring the loan, modifying payments or arranging a short sale. The offer can only be made to owners who live in the homesteaded property, not renters or investors.
The invitation also must notify homeowners that they can contact Legal Aid of Manasota to see if they qualify for assistance.
If the homeowner agrees to a conference, it must be held within 45 days and include the homeowner and his attorney, if he has one; the lender’s attorney; and a lender representative – who can be its attorney – who is authorized to agree to any foreclosure alternative.
If no agreement is reached, or the homeowner decides not to participate, the lender’s attorney can proceed with the foreclosure case but must certify that a conference was held or attempted before getting a foreclosure order.
Haworth said he created the program after hearing repeated complaints about the lack of communication among parties in foreclosure suits.
“The judges and the attorneys were telling me there was a serious disconnect between lenders and their attorneys and homeowners,” he said. “The purpose of the conciliation conference is to break through that wall of silence.”
That wall exists largely because just a handful of “foreclosure mills” file the majority of local foreclosure cases even though those law firms are based elsewhere in Florida, a Sarasota real-estate attorney said.
“Corresponding with lenders’ attorneys is virtually impossible because they have such a huge volume,” said Nancy Cason, who has represented both lenders and defendants in foreclosure cases. “It’s like an assembly line. One lawyer will file, another will take over, and so on.”
Those attorneys’ heavy workloads often result in missed court proceedings conducted over the telephone, causing delays and frustrating local judges, Haworth said.
That’s why Haworth also is requiring law firms that have filed five or more local foreclosure suits since 2006 to designate a primary contact person by Jan. 1. Haworth also will require foreclosure suits to be filed electronically beginning Dec. 1.
He hopes the changes reduce the number of foreclosed homes and help clear clogged court dockets.
“We’re going to push this thing as hard as we can,” he said. “There’s going to be some bumps along the road, to be sure. We’re breaking new ground here.”
The Orlando Foreclosure Expo Feb 7th & 8th
www.foreclosuresexpo.com
posted by Totally Florida Staff at
10:57 AM
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