Relief may finally be here for those dealing with record delays in the foreclosure process in Florida courts. According to the Office of the State Courts Administrator, the backlog in foreclosure cases from fiscal year 2006-07 through fiscal year 2010-11 is approximately 559,945 cases statewide.

To deal with that record backlog crisis and the delays both homeowners and banks have to deal with as a result, the Legislature allocated $9.6 million in nonrecurring dollars to be put to work by Florida's 20 court circuits. Six million dollars will go to the trial courts, which handle the bulk of the foreclosure process, and $3.6 million will go to court clerks to handle the administrative backlog.

The Legislature only allocated 62 percent of what the courts requested, so the courts hope they can reduce the backlog by 62 percent -- or 347,165 cases -- by June 30, 2010.

"The Legislature said we'll never get out of the housing slump if houses are sitting out there vacant. This is going hand-in-hand with managed mediation that has a time frame goal of 120 days in resolving cases," said Kristine Slayden of the Office of the State Courts Administrator.

"Hopefully, this is providing an opportunity for homeowners to have a voice in what is important: to stay in their homes."

"We are bringing in senior judges and we've hired case managers to be of assistance to senior judges to plow through the cases," says Peter Blanc, chief judge of the 15th Circuit, which serves Palm Beach County, which has a backlog of 63,402 cases in the foreclosure process.

The one-time money provided the 15th Circuit with $250,604 for "senior judge days," where retired judges take cases, and $272,103 for case managers.

"It's a great resource we didn't have before. We weren't even treading water. The numbers are overwhelming, and it's a blessing to have the extra resources," he said.

One Factor Even Courts Can't Control: Bank Delays

Just as they do when working with homeowners, banks and their law firms may be a big part of what's holding things up, according to some court personnel.

"What we've been hearing is that the banks are causing a lot of the slowdown. Now that the resources are out there, we have tons of ability to schedule hearings, but the banks aren't taking advantage of it," Slayden said.

"We want to make sure if we don't hit our 62 percent, we can say why, and it may not be in our control."

According to Fourth Circuit Chief Judge Donald Moran, intentionally delaying the foreclosure process may be a business strategy on the part of some banks. Extending the sales dates on foreclosed properties could be good for their bottom lines, because it makes it appear that they are carrying assets on their books instead of liabilities associated with foreclosed properties.

"We haven't implemented it yet, but we are not going to extend the sales date without the debtor and creditor both agreeing," Judge Moran told the Florida Bar News.

"Right now, the homeowner doesn't agree; the banks are doing it on their own. There will need to be a good cause to extend the sales date. Either they are in negotiation or there is a short sale in progress. We are trying to tighten it up. It will result in more closed cases."

Related Resource:

"Chief judges use one-time allocations to move foreclosure cases" (Florida Bar News, August 30, 2010)