102) In their place, states can require lenders to pursue the alternative judicial foreclosure
remedies available under the laws of all states.
Only a court in a judicial foreclosure
or the applicable governmental entity in a nonjudicial foreclosure may make a determination of abandonment, which must be based on credible evidence.
A deed-in-lieu transaction can be particularly helpful to a lender in a jurisdiction that allows only judicial foreclosure
, where foreclosure can take up to two years in states like Delaware.
The court also noted that a judicial foreclosure
sale may also be set aside if there was an excusable mistake, particularly if such mistake caused the property to bring a much lower price that it otherwise would have.
She further noted that states with a judicial foreclosure
process have a foreclosure inventory rate that is roughly three times as high as that for non-judicial states.
The case law in Florida is fairly supportive that once you completed a judicial foreclosure
, the bona fide purchaser is protected from having their foreclosure transfer overturned," Fields said.
It is significantly less expensive and less time-consuming than a judicial foreclosure
, he said.
Both judicial and non-judicial foreclosure
states saw decreases in loans in foreclosure, but states with a judicial foreclosure
system continue to have a combined foreclosure rate that is around three times that of non-judicial states.
Florida represents 50 percent of pending foreclosures in the 23 judicial foreclosure
This is because of the lender has transferee liability for the gains tax outside of a judicial foreclosure
The court also noted that judicial foreclosure
sales may also be set aside if there was an excusable mistake particularly if such mistake caused the property to bring a much lower price than it otherwise would have.
Complicating matters even further is the fact that Florida is a judicial foreclosure
sales in data collected for August 2014.