With Florida sitting at the top of the foreclosure hill,
lawmakers have been making large efforts to reverse this stigma on their
state’s economy. One such lawmaker is,
Senator Darren Soto. According to the Tampa
Bay Times, he says the situation is downright, “shameful.” So with the help of other fellow lawmakers
have proposed 4 Bills that are aggressive in their movement to help Florida
homeowners stay in their homes.
Senator Soto says, “These bills represent a vision for resolving the
foreclosure crisis where we work with families to save their homes and make
them more affordable as well as provide meaningful debt relief. This
vision stands in stark contrast to the numerous bills filed over the past few
years with the sole intention of kicking thousands of Florida’s working families out
of their homes for the sake of expediency. We can and must do better,”
Senate Bill 1236 – Mortgage Price Reduction
Act; will require the Florida Housing
Financing Corporation to apply for $100
million of relief from the federal government’s “Hardest-Hit Fund” program
to assist homeowners reduce their mortgages in order to be recuperate.
Senate Bill 1226/House Bill 371 –
Deficiency Judgment Relief; forgiving the deficiency from the debt not
recovered for a period of 2 years.
Currently, creditors are able to pursue a borrower for the deficient
amount of the principal mortgage by charging additional debts for up to 5 years
after the foreclosure judgment. Sen.
Soto wants this to be 1 year. Banks
would receive a 2 year period to collect as opposed to 20 years.
Senate Bill 1228 – Short Sale Debt Relief
Act; would make the deficiency judgment unenforceable for short sale cases
where the mortgagee’s debt is higher than 20% of the property’s fair market
Senate Bill 1218 – Florida Mortgage Collection
Fairness Act; will not allow mortgage debt collectors to falsify evidence in
order to expedite the foreclosure proceedings.
Oh! I almost forgot one last thing… These bills and the
funds requested to do so do not include the $200 million that Florida already
has from the national mortgage settlement last year. Of course one of the largest concerns being
how to utilize these funds primarily for the wrongful foreclosures and minimize
administrative and legal expenses, which are inevitable.