Sixth Judicial Circuit Establishes New Procedures For Lender Foreclosure Actions On Residential Properties

Chief Judge Robert Morris of the 6th Judicial Circuit, which includes Pasco and Pinellas counties, recently adopted an administrative order (Admin. Order No. 2008-081) requiring all institutional lenders to file additional paperwork prior to foreclosing on residential properties. The order, effective January 19, 2009, cites the 118% increase in foreclosure filings, and the increase in delayed or rescheduled hearings by lender attorneys as the reason for the new rules.

The order requires that when banks file an initial complaint against homestead property, they must provide a "Notice to Homeowner" of intent to foreclose, and a "Lender Contact Information Sheet" so the homeowner can contact the bank. After the complaint is filed and served, the lender must then file a "Certificate of Compliance with Foreclosure Procedures" with the Clerk in order to receive a hearing date. Within five business days of this hearing date, the lender must file a "Foreclosure Judgment Packet," including a Proposed Uniform Final Judgment, the original promissory note, Notice of Sale, and copies of the "Notice to Homeowner" and "Certificate of Compliance." The order also gives clerks the authority to cancel foreclosure sales where the homeowner has entered into bankruptcy proceedings. The new procedures apply to all hearings scheduled after January 19, 2009.

For homeowners who have a foreclosure hearing scheduled after January 19, 2009, the new rules may lead to a cancellation of the hearing if the lender fails to comply with the filing procedures. Because the "Certificate of Compliance" requires lenders to disclose whether they were assignees of the promissory note, it might also mean that standing is no longer available as an affirmative defense. If you have been served with a foreclosure complaint or have a hearing scheduled after January 19, 2009, the attorneys at Yesner & Boss, P.L. can assist you in understanding how these administrative changes may affect your case.