Repo Property Inventories, Foreclosure Fees Rise in Florida

To take advantage of the continued rise in repo property inventories in Florida, the administration of Governor Charlie Crist and state legislators have passed a bill that would increase filing fees for all civil cases in all circuit courts across Florida.

The increase would raise revenues to help unclog the courts of repo property cases and could also help deter new foreclosure filings.

In 2008, there were approximately 385,309 foreclosure filings in Florida. This figure could have earned the state about $30.8 million if the increase had been instituted last year.

According to data from the Mortgage Bankers Association, Florida currently ranks the highest among the states in repo property inventories.

For all civil suits and actions in circuit courts, the filing fee of $295 will be increased to $395. For repo property filings, the fees would range from $395 through $1,900, based on property value or mortgage claim amount.

For properties or mortgage claims valued below $50,000, the filing fee is $395. For properties or claims valued between $50,000 and $250,001, the fee is $900. For claims or properties valued above $250,000, the fee is $1,900.

This scale of fees will apply to all real estate cases, such as boundary disputes between real estate owners, construction liens and repo property filings.

The rates also apply to counterclaims, counter petitions and third-party complaints related to real estate cases.

From every filing fee paid from all kinds of cases, $80 will be directed to the general revenue fund. Previously, all fees paid to the court system were only used for court-related activities.

Several lawyers have opposed the filing fee increases. John Fisher, a lawyer working with Orlando firm Fisher Rushmer Werrenrath Dickson Talley and Dunlap, criticized the state legislature for using judicial fees to fund non-judicial programs.

Wade Vose of Winter Park-based firm Vose Law Firm LLP said the increase in fees adds to the numerous steps faced by mortgage lenders in resolving mortgage loans unpaid by borrowers.

Orlando lawyer Fisher also said that the increased fees would make the courts more inaccessible to those who cannot afford the increased fees. He however believes that most lenders would not be deterred by the fee increases.

Ed Loos III, shareholder and partner in the Orlando unit of law firm Greenspoon Marder, said lenders would just add the $1,900 filing fee to the final judgment for assets valued above $250,000.

Additionally, the lawyers said the filing fee increase is just a temporary solution to problems related to the state budget and repo property inventories.

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