Fla. High Court Creates Safeguards In Foreclosure Process By Requiring Loan Ownership Verification By Lenders Before Filing Suits, Mandating Mediation

In Central Florida, The Tampa Tribune reports:

• The Florida Supreme Court continues to make it more difficult for lenders to foreclose in the Sunshine State. The court says lenders are now required to verify they own loans before they file a foreclosure lawsuit. And, according to the court order, lenders can no longer charge the homeowner for that investigation. This follows the court's order in late December that requires lenders to offer owners of primary residences a chance to negotiate with a third-party mediator before moving forward with foreclosure.

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• Lenders sometimes have a difficult time coming up with the original note to prove they have the authority to foreclose. This is because loans were often bundled and sold as securities. In some cases, the notes are stored in warehouses or get lost in the shuffle.

For more, see Court makes it more difficult for lenders to foreclose.