Southwest Foreclosure filings decline due to new law.
Foreclosure filings by financial institutions in Southwest Florida dropped sharply in August due in part to a new law that took effect July 1st. The new law states that foreclosure filers must provide detailed documentation about who has given the filer the authorization to act & who is in possession of property related promissory notes.
In the past, lenders and mortgage servicers were able to file foreclosures lawsuits without these vital documents. They could then take their time gathering the necessary paperwork and submit later. This is one of the reasons that foreclosure cases can take years to be resolved.
In Sarasota County, there were 412 foreclosures filings in August, down from 561 in July. Manatee County saw 330 filings, down from 452 cases in July but up from 270 cases at the same time in 2012. Across the state of Florida, there were 23,372 foreclosure filings, down 14 percent form July 2013 and 34 percent from August last year.
Local real estate experts expect the foreclosure slowdown to be temporary while lenders adapt to the new documentation requirements.
Keller Williams Realty