By John Galt
September 8, 2011 – 01:35 ET
Since I could not sleep I thought I would open up the statewide newspapers and sure enough a story in the Palm Beach Post really hits at the crux of the robosigning and foreclosure scandals plaguing Florida:
In this story by Kimberly Miller yesterday, two sentences really sum up the mess our state is enduring:
Between July 1, 2010, and June 30 of this year, 104,126 foreclosure cases were dismissed in Florida’s courts, often by lenders needing to refile pertinent paperwork.
“Bank officers cannot simply regurgitate what they read off computer printouts,” Ice said. “This has been a major battleground in foreclosure cases.”
In other words just quoting what was on a computer screen without providing proper documentation to validate the debts owed on a note will no longer be sufficient. While numerous banks operating in Florida have accepted that process and started to clean up the massive paper trail, this ruling will probably cause the backlog of over 400,000 pending foreclosures to expand once again as the institutions who own many of these zombie homes in Florida are in no hurry to add to their inventory. Of course, until the foreclosures are processed they do not have to reflect the losses on their books so why accelerate a process regulators are willingly allowing to take years to complete. These issues do not include the number of personnel required to fulfill the legal requirements and process the paperwork sufficiently for the minimum judicial standard which is another added expense with little return to the financial institutions.
The bottom line is the real estate crash in Florida appears on course to proceed right on through 2020 as I predicted several years ago.