50,000 backlog foreclosure cases in Ninth Judicial Circuit

The Ninth Judicial Circuit which includes Osceola and Orange County reports over 50,000 backlog foreclosures cases. The Florida Bar News article, Rainy Day Dollars Used to Alleviate Foreclosure Backlogs, lists foreclosure backlog totals throughout the 20 judicial circuits in Florida. Ninth Circuit Chief, Judge Belvin Perry was quoted in the news article; “People in the banking community seem to think there will be an increase in filings”.

Increase in foreclosure filings

What are the signs that would suggest that the “people in banking” might be right in thinking there will be an increase in foreclosure filings?

Mortgage delinquencies

 The August housing scorecard prepared by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury noted that; “the market remains fragile with foreclosure starts showing a slight increase and serious delinquencies continuing to work through the pipeline.”

The Mortgage Broker Association has reported that the number of households that are now 30 days late have increased. They say the increase is related to the increase of first time unemployment claims. If this is true, additional late payments may be on the horizon with Florida’s unemployment rate increasing to 11.5% in July.

Unnecessary slowdowns in the marketplace

Right now there are over 5,000 homes in the MLS listed as being sold subject to a short sale. While a number of these homes have had foreclosure proceedings started, it is reasonable to think that some of the homes were presumptively listed in order to avoid foreclosure. However, with lender delays in processing short sales, coupled with low appraisals landing on the desks of the buyer’s lender, these homes may eventually add to the already existing backlog.

Lenders need to continue to work on increasing the lines of communication and streamlining the short sale negotiation process so more homes can end up sold to ready, able and willing buyers, thereby reducing the number being foreclosed.

If you are facing foreclosure you need to know that their may be options for you. These options include programs and solutions that might allow you to stay in your home. HUD’s foreclosure avoidance counseling directory and Making Home Affordable.gov are two great resources of information for you.

Pick up the phone and call your lender, your attorney or me to receive additional information.