Pending REOs and Foreclosures in Suntrust Not the Only Issue in FL

by on Foreclosure Crisis

As of the end of June 2010, over 460,000 cases of foreclosures, including bank, government and foreclosures in Suntrust, are pending in the state of Florida. The pending cases, along with the controversy surrounding documentation and the resulting nationwide investigation, have all made the housing market a very confusing place at the moment.

To add to the problem of high levels of foreclosures in the state, including Hollywood foreclosed homes, investigators have also recently uncovered processing-related problems. Lawyers representing troubled homeowners have alleged that process servers filed faulty affidavits related to personal services for foreclosures.

According to some of the lawsuits filed in behalf of owners of foreclosed Florida bank homes for sale, these homeowners did not receive a court summons. Lawyers have accused servers of not taking the necessary steps to locate homeowners, while others have asserted that false affidavits were filed with regards to when or to whom the papers were delivered.

As the number of bank foreclosures, including foreclosures in Suntrust, continues to rise, reports on erroneous process services have also increased. Market analysts have stated that this is primarily due to banks trying to speed up the process to clear their backlogs. They also stated that servers are usually rushed to expedite the foreclosure process. The fact that servers are paid based on the number of people they are able to serve is also considered to be a factor.

Under existing rules, before homeowners' properties can be put under bank foreclosed listings or before the process of foreclosure is even started, the homeowner concerned should first receive a summons. The problem, some housing market observers have stated, is that majority of lenders and banks outsource the process serving task to companies, who in turn, sub-contract them to independent and private servers.

Housing experts have emphasized the importance of the summons, asserting that some borrowers lose their homes because they did not receive their summons and were unable to comply with filing deadlines or attend hearings. The issue is further aggravated by the fact that there is no regulating or licensing agency that oversees process servicing in Florida, which means that summons for owners facing foreclosures, including possible foreclosures in Suntrust, are often haphazardly prepared and sent out.

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