Florida Counties to Host Nation's First Online Foreclosure Auctions
Thursday, September 04, 2008
On September 2, Florida's Duval and Manatee counties will host the nation's first in a series of planned online auctions of foreclosed properties, the onset of an expected national trend in foreclosure dealings. Historically, foreclosure auctions took place on the steps of county courts, but a recent bill (HB 773) signed by Florida Governor Charlie Crist in June establishes new procedures facilitating online foreclosure auctions.
According to the most recent data from RealtyTrac, in July alone, Florida saw 45,884 foreclosures -- the second highest number in the country, and a 139 percent increase from a year ago. The escalating housing crisis has led to a surge in foreclosures, that have ultimately pushed the traditional auction method to its breaking point. The amount of paperwork and time involved in these foreclosure transactions has heightened inefficiency among county clerks.
The passing of Florida's innovative legislation that allows county clerks to conduct online auctions for foreclosed properties and tax deeds, was facilitated in part by Akerman's Policy Practice Group of the Florida-based law firm Akermann Senterfitt.
Allan Katz, chair of Akerman's Policy Practice Group said the new legislation will benefit every party involved in foreclosure auctions. “The bill reduces the amount of time and paperwork involved for clerks; increases competition in bidding which leads to higher sale prices for the banks; and reduces the number of vacant properties that drag on home values in the county,” Katz explained.
Members of Akerman's Policy Practice Group, led by Brady Benford, Larry Williams and Donovan Brown, worked to pass HB 773 through the Florida legislature on behalf of their client realauction.com. RealAuction will manage and execute the upcoming online auctions in Duval and Manatee counties.
Florida is not the only state under siege by an influx of foreclosed properties. California had 250,000 foreclosure filings in 2007 -- up 51 percent from 2006 -- with numbers continuing to climb in 2008. Michigan and Nevada have also witnessed exceptionally high numbers of foreclosed properties; numbers that are forcing states to reexamine what is some argue are extremely outdated laws concerning foreclosure auctions.
“If we tried this three years ago the bill would have gone nowhere,” noted Katz. “The credit crunch and housing crisis that led to the massive increase in foreclosures made it apparent that a change was necessary.”
According to the most recent data from RealtyTrac, in July alone, Florida saw 45,884 foreclosures -- the second highest number in the country, and a 139 percent increase from a year ago. The escalating housing crisis has led to a surge in foreclosures, that have ultimately pushed the traditional auction method to its breaking point. The amount of paperwork and time involved in these foreclosure transactions has heightened inefficiency among county clerks.
The passing of Florida's innovative legislation that allows county clerks to conduct online auctions for foreclosed properties and tax deeds, was facilitated in part by Akerman's Policy Practice Group of the Florida-based law firm Akermann Senterfitt.
Allan Katz, chair of Akerman's Policy Practice Group said the new legislation will benefit every party involved in foreclosure auctions. “The bill reduces the amount of time and paperwork involved for clerks; increases competition in bidding which leads to higher sale prices for the banks; and reduces the number of vacant properties that drag on home values in the county,” Katz explained.
Members of Akerman's Policy Practice Group, led by Brady Benford, Larry Williams and Donovan Brown, worked to pass HB 773 through the Florida legislature on behalf of their client realauction.com. RealAuction will manage and execute the upcoming online auctions in Duval and Manatee counties.
Florida is not the only state under siege by an influx of foreclosed properties. California had 250,000 foreclosure filings in 2007 -- up 51 percent from 2006 -- with numbers continuing to climb in 2008. Michigan and Nevada have also witnessed exceptionally high numbers of foreclosed properties; numbers that are forcing states to reexamine what is some argue are extremely outdated laws concerning foreclosure auctions.
“If we tried this three years ago the bill would have gone nowhere,” noted Katz. “The credit crunch and housing crisis that led to the massive increase in foreclosures made it apparent that a change was necessary.”
