South Florida Real Estate News: Week Ending February 13

By Mark Schecter

Can Court Ordered Mediation Reduce the Foreclosure Rate?

According to recent statistics released by the Florida Supreme Court, foreclosures in the Tri-County area are on the rise. In 2009 alone, more than 143,000 home mortgages fell into default. Since then, foreclosures are up 13.2%.

The Miami and Fort Lauderdale areas were among the top 10 locations in Florida with the highest foreclosure rates. Another report released recently, also indicates Florida has the second highest foreclosure rate in the nation. This means that this problem may be affecting the local economy statewide.

So, what’s being done? In a word, mediation.

Due to overwhelming number of foreclosure lawsuits, Supreme Court Chief Justice Peggy A. Quince ordered every circuit court in Florida to create a mediation program to put in place for individuals involved in the foreclosure process. This is an effort to resolve disputes between owners and lenders without the need for a long, drawn out litigation process.

Prior to participating in mediation, homeowners will be required to undergo foreclosure counseling. This allows them an opportunity to get a better understanding of what they should expect in the process. The new mediation rule may significantly reduce the burdens felt by the borrowers and the courts, and have a positive impact on the foreclosure rate in Florida.

Florida Condos Target Delinquent Owners

Many condominium owners in South Florida are growing tired of neighbors that refused to pay maintenance fees and maintain their properties, but still get to enjoy the same amenities as owners that timely pay the fees they’re responsible for.

While associations are on the hook to pay their bills, delinquent owners are able to watch free cable TV paid for by the association, elect board members and even collect rent from tenants without forwarding a dime to the association they owe money.

There seems to be a general consensus among the condominium owners that struggle to make sure all of their fees are paid in full, and that’s delinquent owners are taking advantage of the condo associations. And, this is not fair to those struggling every month to pay their share to the associations.

As a result of this growing concern, two bills are on the table to stop condo owners from neglecting their obligations. Those bills are:

House Bill 329 – This bill is specifically designed for condo associations, and is sponsored by Rep. Julio Robaina.
Senate Bill 1196 – This bill is designed to address condo and homeowner associations, and is sponsored by Senator Mike Fasano.

If these two bills are passed, the law will be amended to limit the amenities delinquent condo owners receive, and assess strict sanctions on people that fail to stay on top of their payments.

The restrictions that will be put in place could prevent delinquent owners and their tenants from accessing the swimming pools, clubs, etc, and also take away their right to vote at board elections. Most condo owners welcome the Senate and House bills and are happy to see something being done to curb this delinquent behavior.