RETURN OF THE FLORIDA ROCKET DOCKET IN FORECLOSURE AND A GREATER NEED FOR CHAPTER 13
Six months ago, House Bill 87 became the new foreclosure law in Florida. This marked the return of the so called “Rocket Docket” to foreclosure in Florida Courts. It is interesting see the effect of this bill after 180 days of application by the Florida Courts, in particular Jacksonville Foreclosure Courts.
While pre-foreclosure activity is down over 23% from the year prior, auctions are up almost 7% from the year prior and bank owned property is up over 23% from the year prior (63% from the prior month!!!) (Source: Realtytrac December 2013). These figures make it clear that the new law is doing what was intended – speeding up foreclosures and pushing people out of their homes. These figure are despite the great number of foreclosure defense promises made by both legal and non-legal associations.
The typical client that we are seeing now is three or more years behind on their home and has been in foreclosure defense almost the entire time. While they may have bought some time, no progress has been made on what the client really wants, which is to save the home and set up a payment that is affordable.
One point to make about foreclosure defense – our office does not handle foreclosure defense cases. Why? Based on our experience and the steady flow of disappointed clients, it simply does not work. The clients end up farther behind on a mortgage that really needed to be modified instead of just put on hold. Interest continues to accrue, late charges are assessed each month and attorney’s fees are continually tacked on to the account. Worse, most clients are paying hundreds of dollars in foreclosure defense fees each month to allow this to happen. Eventually, the mortgage company will get its paperwork straightened out and the trial court will set a sale date. This is when the foreclosure defense firm turns into a bankruptcy firm and tells the client to file for Chapter 13.
Why would anyone go through that type of activity if they really wanted to save their home? Chapter 13 bankruptcy filings allow a court ordered mediation program which sets the mortgage payment at 31% of a family’s gross income. As long as that amount can cover a reduced principal, interest, taxes and insurance amount, the mortgage company is generally obligated to offer a HAMP or some other modification program.
Our office will offer you an honest assessment of your options to save your home and the chances of a modification based on the amount of your current income and mortgage debt. While the program is not a way to force a mortgage company to modify the loan, the program has been very successful at saving homes over the last 18 months in the Jacksonville area. Let us see if you qualify.
At Mickler & Mickler, we attend Court on a regular basis. We have the experience and knowledge to ensure that you receive the correct advice when confronted with difficult financial decisions related to filing bankruptcy. Contact us at 904.725.0822 or bkmickler@planlaw.com.
