Foreclosure proceedings in Florida are all judicial foreclosure proceedings, which are controlled by the courts. This means that the lender must sue the borrower and obtain a foreclosure order from the court. Depending on the court's schedule and burden, it typically takes 180 to 200 days to complete the foreclosure process in Florida. A judicial foreclosure begins when the lender files a lawsuit asking a court for an order that allows the sale by foreclosure. The borrower usually has 20 days to file a response with the court.
If a judge allows a lender to claim your home, it will hold a foreclosure sale. This usually occurs within 30 to 35 days after the final judgment. The house is then sold at a foreclosure auction and you must vacate the house. The judge can also allow holders of minor liens to purchase the property up to the date of the foreclosure sale. In this case, you can still keep your home if you provide proof of payment before the foreclosure sale, usually about 10 days before the sale.
If you don't make a payment, the managing entity can normally charge you a late payment surcharge after the grace period expires. Most home loans offer a grace period of ten to fourteen days, for example, before you incur late fees. To find out the grace period in your situation and the amount of the monthly late payment surcharge, review the promissory note or your monthly statement. As long as the national COVID-19 emergency continues, homeowners with a federally backed mortgage loan, regardless of their delinquency status, who are experiencing financial hardship due directly or indirectly to COVID-19, can obtain a moratorium. About half of the states, including Florida, require the lender to file a lawsuit in court to foreclose the mortgage. The lender must publish a notice of the foreclosure sale in a newspaper once a week for two consecutive weeks, and the second publication at least five days before the sale. The process ends with a foreclosure sale.
The foreclosure sale must take place 20 to 35 days after the date of the judgment, unless the court order states otherwise. The sale is an auction in which both public and lenders can bid on the property. The lender usually makes an offer on the property using what is called a credit offer instead of making a cash offer. With a credit offer, the lender obtains credit up to the amount of the borrower's debt. The highest bidder for the sale becomes the new owner of the property.
Sometimes, a foreclosure sale doesn't make enough money to pay off all of what is due for the loan. The difference between what was paid at auction and what was owed is called deficit balance. Many states, including Florida, allow lenders to issue personal judgments called deficit judgments for this amount against borrowers. The lender has one year to apply for judgment if it is a four-family single-family housing unit. This statute of limitations begins on day after court clerk issues certificate of title to buyer who purchased home in foreclosure sale. Florida law requires court clerk to promptly submit certificate of sale after foreclosure sale takes place, so clerk generally submits it within about one day after sale.
If no one objects to sale, secretary issues certificate of ownership ten days after presentation of certificate of sale. The court has some flexibility when it comes to amount due but cannot overcome difference between amount of judgment and fair market value in case of residential property occupied by its owner. Managers and lenders sometimes make mistakes or forget measures. If you believe that your managing entity or lender failed to complete mandatory step, made mistake or violated state or federal foreclosure laws, you may have defense that could force foreclosure to resume or you could have advantage in finding alternative. Consider talking to local foreclosure lawyer or legal aid office to learn about your rights. An attorney can also tell you about different ways to avoid foreclosure.
Similarly, HUD-approved housing counselors can provide useful information (at no cost) on several alternatives to foreclosure. Florida is judicial foreclosure state so bank or homeowner's association that wishes to foreclose on home must receive approval from judge. Case must be filed in circuit court where property is located and under Florida foreclosure law all cases must be conducted in court of equity which are authorized to apply principles of fairness (fairness) rather than being limited legal defenses. Therefore judge may consider actions of bank that would make foreclosure unfair. Learn every step of foreclosure in Florida from not making first payment to foreclosure sale and if have questions about process in Florida or want learn about possible defenses to foreclosure and possibly fight foreclosure in court consider talking lawyer who specializes in foreclosure. In fact if foreclosure sale is scheduled for next day or so best way stop sale right away is file for bankruptcy. In Florida lender who is usually highest bidder in foreclosure sale will normally obtain right possession in foreclosure judgment. Overall Florida has one longest foreclosure periods in country although Florida Fair Foreclosure Act (H). Mortgages in Florida may include default letter clause that requires lender inform borrower if loan is default before process begins. If don't hire attorney now process is likely end six months result loss home. Florida law establishes procedure designed accelerate process uncontested cases or cases where landlord has...