Last week, federally-backed mortgagor Fannie Mae changed Florida's foreclosure deadline from 165, or six months, to 450 days, or 15 months. The decision was made because of the serious backlog of foreclosure cases the state currently faces.

This means that bank lawyers now will have 15 months from the day the lawyer is given the case to hold a foreclosure auction before fines are imposed. If the foreclosure is not wrapped up before the deadline, the law firm handling the foreclosure for the bank can be fined based on how much is left on the mortgage.

It is the second time Fannie Mae has extended the foreclosure deadline, after first increasing it last August from 150 days to 185.

"We review them periodically and come up with a time frame that best reflects the existing conditions in that state," a Fannie Mae spokeswoman explained.

The state now has the second-longest allowable timeframe for foreclosures since the new deadlines were announced by Fannie Mae last week. New York City has the lengthiest timeframe with 570 days, and New Jersey is tied with Florida for second with 450 days.

However, if you look at actual numbers from RealtyTrac, a foreclosure data company out of California, it was estimated that a foreclosure in Florida actually takes about 619 days on average from the initial court filing to the bank's repossession. Therefore, many are skeptical that this change will have any sort of impact on the state.

"They can't get foreclosures done in 185 days and I don't think they can get them done in 450 right now," a foreclosure defense attorney told the Palm Beach Post. "They can tell the bank attorneys whatever they want, but without funding, the courts are going to grind to a slow, pathetic halt."

While this new deadline might not speed up foreclosures, it could still mean that homeowners have more time to negotiate a foreclosure settlement with banks. If you are facing foreclosure, now is the time to act. Contact a foreclosure defense attorney in your area to explore your options.

Source: Palm Beach Post, "Lawyers get more time to finish foreclosures," Kimberly Miller, 6/7/2011.