Agenda 03/23/2010 Item #10C
Agenda Item No. 10C
March 23, 2010
Page 1 of 4
EXECUTIVE SUMMARY
Recommendation to approve foreclosure-related guiding principles as provided by
members of the Collier County Foreclosure Task Force upon request of the Board
of County Commissioners in addressing any foreclosure legislation considered in the
Florida Legislature.
OBJECTIVE: To establish a set of guiding principles supported by the Board of County
Commissioners (BCC) as it relates to any proposed foreclosure-related legislation being
considered by the Florida Legislature during this current 2010 Legislative Session.
CONSIDERATION: As requested by the BCC at the regular meeting on March 9,
2010, some members of the Collier County Foreclosure Task Force reviewed the
legislative issues surrounding the foreclosure crisis in the State of Florida. Given urgent
circumstances from task request to delivery date, the principles included below were not
presented to the entire Foreclosure Task Force for a formal vote. The working group was
comprised of four attorneys and four other professionals, including the Collier County
Code Enforcement Director who oversees an ambitious and acclaimed Blight Prevention
Program.
In recognizing more than 50 bills have been filed addressing the issue of foreclosures in
this 2010 Legislative Session, the Task Force reviewed several key pieces of pending
legislation and deliberated upon the broader topic of foreclosure and its impacts on the
Collier County community. That analysis resulted in the following observations and
guiding principles for the BCC to apply to any foreclosure legislation under
consideration:
. The BCC favors protecting and preserving the safeguards afforded by due
process and the property rights of individual homeowners, particularly
conceming homesteaded property. This maximizes the opportunity to save homes
from foreclosure that realistically can be saved, thus stabilizing neighborhoods.
In order to protect due process rights, non-judicial foreclosures should not be
permitted.
The BCC supports the mandatory mediation process ordered by the Supreme
Court in December that has not even been implemented in most jurisdictions. It
will create two tracks for foreclosures - homestead/occupied and vacant. The
vacant properties will be expedited through the system. The homestead properties
will be sent to a mediation process where all options available to the homeowner
will be negotiated between the borrower and lender in a structured environment.
In the jurisdictions where this has been implemented, it has resulted in very
positive results.
Non-judicial foreclosure may not provide the oversight maintained by the neutral
judicial system.
Agenda Item No. 10e
March 23, 2010
Page 2 of 4
While the non-judicial foreclosure process is supposed to be structured as
"voluntary," the concept of "voluntary" is neither realistic nor meaningful. The
disparity of bargaining power between a lender and a borrower may preclude
meaningful negotiation of a vo luntary aspect to the transaction. The borrower has
few choices.
The shifting of the burden of proof onto the borrower by making the borrower
file suit to stop a non-judicial foreclo.~ure action is a true elimination of due
process. Additionally, the cost of filing any such suit may be prohibitive to many
borrowers,
There is no showing that a non-judicial process would be any faster than the
current process. The problem lies not in a "clogged court system" but in the
sheer number of foreclosures being handled by a relatively small number oflaw
fIrms in the state and the massive volume of delinquent loans being processed by
understaffed lenders. It is currently possible to have a judicial foreclosure
completed in 102 days under the current methodology, if it is diligently pursued
by the lenders.
As to the issue of deficiency judgments, we believe in maintaining and
preserving in Florida the availability of competitive mortgage products now and
in the future for individuals who want to buy and sell real property. If
legislative relief could be provided consistent with this principle to homestead,
owners/borrowers whose mortgages are substantially 'under water,' this should be
explored if it could be fairly and appropriately tailored to address a specific and
achievable policy objective that would benefIt not only the individual
homeowner, but the entire community.
We support the fair and efficient processing of foreclosure cases in the system.
There should not be any unreasonable or undue delay that is purely strategic and
unrelated to the legal merits of a claim, defense or right to mediation by either the
lender or borrower in the foreclosUre process.
The BCC believes it is essential that unpaid condominium and homeowners'
association fees be addres,~ed in a fair and equitable manner.
FISCAL IMPACT: There is no fiscal impact associated with this executive summary.
LEGAL CONSIDERATIONS: This item is legally sufficient for Board action.
GROWTH MANAGEMENT IMPACT: There is no growth management impact
associated with this executive summary.
Agenda Item No. 10e
March 23, 2010
Page 3 of 4
RECOMMENDATION: To approve the foreclosure-related guiding principles as
provided by members of the Collier County Foreclosure Task Force upon request of the
Board of County Commissioners in addressing any foreclosure legislation considered in
the Florida Legislature.
Prepared by Debbie Wight, Assistant to the County Manager
Agenda Item No. 10C
March 23, 2010
Page 4 of 4
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Meeting Date:
10C
Recommendation to approve foreclosure-related guiding principles as provided by members
of the Collier County Foreclosure Task Force upon request of the Board of County
Commissioners in addressing any foreclosure legislation considered in the Florida
Legislature. (Debbie Wight, Assistant to the County Manager)
3/23/2010 9:00:00 AM
Item Number:
Item Summary:
Approved By
Leo E. Ochs, Jr.
County Manager
Date
County Managers Office
County Managers Office
3/17/201010:35 AM
Approved By
Jeff Klatzkow
County Attorney
Date
3/17/201010:44 AM