Florida still has the highest percent of residential foreclosures, but an improving economy and years of aggressive court action have made it possible to say 2014 may be the last year of the recession hangover inventory.
“You’re going to see the issue of the five-year statute of limitations become front and center,” said Roy Oppenheim at Oppenheim & Pilelsky in Weston.
Banks that accelerated a mortgage with a notice of default in 2008 or later are now trudging through an era of statute of limitations, where they must obtain the foreclosure judgment.
There had been speculation that as 2013 wound down, banks might rush to file foreclosure motions to beat the statute of limitations, but that hasn’t materialized.
“It’s being done all the time. What’s special about them now is the title insurance industry is not recognizing them automatically,” Oppenheim said. “The industry is waiting for there to be more legal clarity.”
Despite optimism of an end in sight, Florida is still the state with the highest foreclosure rate. One in every 392 homes in the Sunshine State is in some stage of foreclosure. Some counties far exceed that. In Miami-Dade the rate is one in 244.
No other large population state comes close. According to RealtyTrac, Illinois is 1 in 700; California, 1 in 1,095; New York, 1 in 1,989 and Texas 1 in 2,310.