Closing on a Foreclosed Property in Panama City, Florida: What to Expect

The length of the Florida foreclosure process can vary, but it typically takes between 8 and 14 months to close on a foreclosed property in Panama City, Florida. If you hire a foreclosure defense lawyer, the process may take longer. Approximately 90 days after the date of the final judgment, the foreclosure auction begins. The auction is run by the county and usually takes place online. At the auction, the lender will set their maximum bid for the property.

If no third party makes an offer above that amount, the lender recovers the property and then hires a broker to sell it to them. If an investor makes an offer above the lender's maximum amount, they become the new owner of the foreclosed property.If the property is sold above the amount of the final judgment, whatever is left is divided among the other lien holders according to their lien priority. Whatever is left after that, in any case, goes to the previous owner. Foreclosure actions are usually filed and prosecuted as civil lawsuits in state court. Foreclosure lawsuits are generally treated no differently than any other type of civil lawsuit and are subject to the same rules that govern the discovery of evidence, including statements, the practice of motions, affirmative defenses, counterclaims, trial and the right of appeal, as any other civil action. A highly contested foreclosure in Florida may take more than a year to resolve, not including any subsequent appeals.

A Florida mortgage lender can request the appointment of a court administrator for an income-generating property in connection with a foreclosure action or in an action filed separately. The borrower has the right to redeem the property up to the date of sale, unless an extension is stipulated in the final foreclosure judgment. A lender may seek to take control of the rents and profits that derive from the real estate mortgaged in a foreclosure action. In some circumstances, you may be able to make a cash offer on your foreclosed property and close it on a date of your choosing if you want to avoid putting your house up for sale. Because Florida requires judicial foreclosure of any mortgage interest, powers of sale or provisions of a mortgage registered in Florida that give the mortgagee the right to take possession of the mortgaged property, operate, manage or sell it without completing a foreclosure action are not enforceable in Florida. Once a certificate of ownership has been issued and registered in connection with a foreclosure sale, the successful bidder will be registered as the owner of the foreclosed property. It is recommended that each appeal (foreclosure, foreclosure of promissory note, foreclosure of any security right and enforcement of any security agreement) be treated as a separate accomplice in the foreclosure lawsuit. The final judgment will enforce foreclosure of real estate interests of different parties to action, indicate amounts owed to lender by borrower, set date of sale by foreclosure and order distribution of any excess sales.

Foreclosures in Florida are “court proceedings” and are governed by Section 45,031 of Florida Statutes. A traditional foreclosure action is processed for judgment in same way as any other Florida lawsuit. If counterclaims are filed in connection with a foreclosure action, Florida law states they can be canceled so lender can proceed to foreclosure through final hearing or judgment on foreclosure and counterclaim will be judged at later date. In addition, under Florida law lender can sue to collect promissory note and foreclose mortgage in single proceeding. In 1993, in effort to streamline foreclosure process, Florida legislature enacted Section 702.10 of Florida Statutes which created legal foreclosure procedure using orders to prove cause. An appraisal of property foreclosed on or very close to date of foreclosure sale is extremely useful in establishing judgment of deficiency.

Lana Tasma
Lana Tasma

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