The last few years, the threat of bankruptcy and foreclosure has plagued many families across the country and many more face daily challenges to maintain their financial obligations. As news spreads about the drop in foreclosures for yet another consecutive month this fiscal year, many people are taking the news as a sign of hope for good things to come. However, the drop in the number of foreclosures isn’t good news for everyone.
The Costs For Going To Court
A home going into foreclosure doesn’t just affect the family who defaulted on their mortgage, but impacts the court system as well. When a home enters foreclosure, the court system charges fees for the case filing and, surprisingly, uses this revenue as a major source of funding.
Recent drops in foreclosure filings in the state of Florida have some county court systems scrambling to find alternative sources of revenue. In the past, foreclosure filings have been one of the main source of funding for many county court systems, which now threatens to negatively impacting public services. Many critics blame the reliance of revenue streams on filing fees, stating the system is inherently flawed and subjects itself to dips in revenue that are not controllable.