Yesterday, it was reported that Florida lawmakers voted not to extend a $6 million stipend aimed at reducing the foreclosure backlog in the state's courts.

It could be good news for Florida homeowners in foreclosure, who may have even more time to negotiate a settlement with lenders or attempt a short sale, but it also means that many deteriorating homes could sit in limbo for a longer period of time, bringing down their values even further.

The Palm Beach Post reported that the state courts, which operate on a fiscal year that runs from July 1 through June 30, will see a major reduction in funding beginning in July that will lead to fewer judges and workers being assigned to process foreclosures.

Last year, the $6 million stipend allowed counties to hire senior judges, case managers and assistants to focus solely on reducing the number of backlog foreclosure cases. In fact, the extra funds allowed the statewide case backlog of 462,339 in June 2010 to be reduced by 139,615 cases.

But without the stipend many district courts will not have the funds to provide this kind of attention to foreclosure cases, so the backlog is expected to soar once more, the Palm Beach Post reported. For right now, the Palm Beach County Chief Judge said some foreclosure hearings will be temporarily canceled.

"My concerns are we won't have the resources to meet the need in that area, but only time will tell," he said.

While a slowed foreclosure process is likely in Volusia County and other counties in the state, it is still vitally important that you act fast if you have been served with a foreclosure complaint. If you meet with a foreclosure attorney early on in the process, you can evaluate your options and work out a plan that makes sense in your situation.

Source: The Palm Beach Post, "Fewer judges will be hearing Florida foreclosures as state money runs out," Kimberly Miller, 5/19/2011.