Due to the clogged courts that handle Florida foreclosures, Moody's says that the housing market in Florida will not begin recovery until late 2012 or early 2013. Presently, it takes nearly two years for a foreclosure proceeding to become final, making Florida the state with the third longest wait time for finalizing foreclosures.

Folks who are unfortunate enough to find themselves in foreclosure proceedings are unable to afford to pay for the maintenance that homes need on a regular basis. This helps depress the economic recovery in Florida as home contractors have a smaller pool of clients.

Nor do homeowners in foreclosure spend on furnishings or other household needs. This has a domino effect on stores and manufacturers and ultimately to everyone.

The Palm Beach Post interviewed seven economists. Six of them concurred that faster foreclosures would help to solve the housing problem and generally speed up economic recovery in the state.

Even though people in foreclosure could spend their freed up mortgage payments on other things, they likely are trying to manage other debts and are saving any excess for the time they have to move, claims one of the economists interviewed by the Post.

Accordingly, some are calling for reforms to speed up the process. Fort Lauderdale foreclosure attorneys have noted that proposed reforms would remove the courts from the process and turn Florida a non-judicial foreclosure state. This is of concern as it could force many families into homelessness that they are not prepared for, and at the same time push more foreclosed properties into the already distressed housing market.

Source: Sun-Sentinel "Would moving foreclosure from courts speed Florida's recovery?" Sept. 26, 2011