The guidance of an attorney is recommended during this phase. § 1024.40). § 1024.41). To educate individuals in this situation, we have narrowed the standard process down to 10 steps. Foreclosure. Florida Foreclosure Process In Florida, a lender must go to court to foreclose its mortgage. In Florida, a lender may obtain a deficiency judgment as part of the foreclosure action or in a separate action within one year for a property that is a one-family to four-family dwelling unit. This formally begins the judicial foreclosure process, which means the action will be publicly recorded. The sale is an auction, which is open to the public. I have used Craig Kelley of Kelley, Fulton & Kaplan for both corporate and personal legal matters and have found Mr. Kelley and his firm to be of the highest caliber in providing legal services. Call your loan servicer if you want to find out about reinstating your loan. Your Guide to the Florida Foreclosure Process Step 1: Borrower Begins Missing Payments. Every homebuyer signs two very important documents when they purchase a house. A summary judgment motion asks that the court grant judgment in favor of the lender because there’s no dispute about the critical aspects of the case. (The bid amount at the sale is presumed to be sufficient consideration for the sale.) Florida is a judicial foreclosure state. Now, however, federal and state laws heavily regulate loan servicing and foreclosure processes. You can also call the Homeownership Preservation Foundation (HOPE) Hotline, which is open 24 hours a day, seven days a week, at 888-995-HOPE (4673). Of course, if you're able to work out a loss mitigation option, like a loan modification, that will also stop a foreclosure. Florida is a judicial foreclosure state, which means that a lender must go to court and receive court approval before foreclosing on a home. § 1024.39, 12 C.F.R. If you don’t respond to the suit, the lender will ask the court for, and probably receive, a default judgment, which will allow it to hold a foreclosure sale. You can extend pre-foreclosure by working with the lender on alternatives to foreclosure and loss mitigation. Florida foreclosure Process Step by Step Here is the first step in the Florida foreclosure process. Without a missed payment, there cannot be a foreclosure. In the state of Florida, lenders have the option to seek a deficiency judgment for the dollar amount that was not covered by the property’s sale price. In Florida, the lender, usually the high bidder at the foreclosure sale, typically gets a right to possession in the foreclosure judgment. During the pre-litigation period, before a bank or servicer has filed a lawsuit, borrowers may receive a notice of acceleration. © 2019 - 2021 Kelley, Fulton & Kaplan. You can also find this information on your monthly mortgage statement. If the judgment is in favor of the lender, the property will be scheduled to be sold at auction, which typically occurs a few weeks later. This is where a defense can be raised, and thus it is advisable for the debtor to have this drafted by an experienced foreclosure defense attorney. (Fla. Stat. The attorney listings on this site are paid attorney advertising. The lender might then ask the court to grant summary judgment. The lender has no right to take your home until they obtain a judgment of foreclosure and writ of possession from the Court. Under federal law, the servicer usually can’t officially begin a foreclosure until you're more than 120 days past due on payments, subject to a few exceptions. The firm was extremely helpful and thorough. Florida Foreclosure Flow Chart. Start here to find foreclosure lawyers near you. Step 3. This step begins the foreclosure process, notifying the debtor that a civil complaint has been made against them. Although the programs under the Making Home Affordable (MHA) initiative have expired, the MHA website still contains useful information for homeowners facing foreclosure. In Florida, the primary method of mortgage foreclosure is judicial. § 1024.30, 12 C.F.R. If foreclosure proceedings have begun, contact a foreclosure defense attorney right away. If you (the former homeowner) don't move out, the sheriff will make you leave. Call Our Florida Foreclosure Defense Lawyers Today. In Florida, you can redeem the property before the later of: If you're facing a foreclosure, filing for bankruptcy might help. No later than 45 days after missing a payment, the servicer has to inform you in writing about loss mitigation options that might be available and appoint personnel to help you try to work out a way to avoid foreclosure. Inspections, which are generally drive-by, are usually ordered automatically once the loan goes into default and typically cost around $10 or $15. Foreclosure process in Florida Step 1: Pre-foreclosure. I highly recommend Kelley, Fulton & Kaplan, P.L. Under federal mortgage servicing laws, if the property is your principal residence, the servicer must contact, or attempt to contact, you by phone to discuss loss mitigation options, like a loan modification, forbearance, or repayment plan, no later than 36 days after you miss a payment and again within 36 days after each following delinquency. In fact, if a foreclosure sale is scheduled to occur in the next day or so, the best way to stop the sale immediately is by filing for bankruptcy. foreclosure defense attorney to investigate your case for evidence of robo-signing. Or, if you want to save your home, filing for Chapter 13 bankruptcy might be the answer. Generally, once the lender gets a deficiency judgment, the lender may collect this amount—in our example, $50,000—from the borrower. Since 2013, residential foreclosure actions in Florida have been significantly shortened—from over two (2) years to possibly less than six (6) months—because of the new “fast-track” process provided in section 702.10, Florida Statutes. Florida’s statutory judicial procedure allows a mortgagee to force the sale of the mortgagor’s property at a public auction in order to satisfy the mortgage debt. Day 120-130: Anywhere in this period the bank will file the formal notice of foreclosure, the Lis Pendens. At this point, the lender will likely motion for a summary judgment to avoid formal court proceedings. § 45.031). Their efficiency and professionalism is exceptional. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. What is a Notice of Acceleration and When Does It Appear in the Florida Foreclosure Process? (Fla. Stat. There will be a fee charged, but you will receive that back when the foreclosure takes place. Generally, when a person purchases a house or other property, there is a … Literally a week from a foreclosure sale date on our home, Andrew F. took action, filed motions with the court and met me down at the courthouse to speak with the judge. How courts and agencies interpret and apply laws can change. This notice will explain exactly how many days before the bank files the Lis Pendens, the formal foreclosure complaint filing. The Foreclosure Process. get any excess money after a foreclosure sale. And some rules can even vary within a state. Public Notice of the Foreclosure Sale The lender has to publish a notice of the foreclosure sale in a newspaper once a week for two consecutive weeks, with the second publication at least five days before the sale. I highly recommend them. Residential Borrower’s Guide to the Mortgage Foreclosure Process in Florida (Residential Property) 1. Up until then, the lenders only option for recovering the debt is to issue a breach letter and contact the borrower. Also, many Florida mortgages allow the lender (or the current loan holder, referred to as the “lender” in this article) to take necessary steps to protect its interest in the property. when the clerk files the certificate of sale or. Check your loan documents to find out if you get a reinstatement right and, if so, the deadline to complete one. A foreclosure lawyer can advise you as to your options for delaying or stopping the foreclosure process in Florida when you have received a notice of sale. In a Florida foreclosure, you’ll most likely get the right to: So, don’t get caught off guard if you're a Florida homeowner who’s behind in mortgage payments. (Fla. Stat. First and foremost, the first step is determining whether there are surplus funds available for the former Homeowner to claim. Thereafter, they have 30 days to pay their mortgage. One way to stop a foreclosure is by “redeeming” the property. Federal mortgage servicing laws also prohibit dual tracking (pursuing a foreclosure while a complete loss mitigation application is pending). (Fla. Stat. T. The court process can move quickly if timely action is not taken to fight the HOA. The court has flexibility regarding the amount of the deficiency, which can't exceed the difference between the judgment amount and the fair market value in the case of an owner-occupied residential property. The deficiency is $50,000. When a borrower files for bankruptcy, it puts the Florida foreclosure process on hold until the bankruptcy court makes a decision regarding their case, which can buy them some time to work on getting the money they need to resume paying their mortgage. The lender can bid up to the total amount owed, including fees and costs, or it may bid less. Even after your property is sold at auction, you have a right of redemption for 10 days. You can use the CFPB's Find a Counselor tool to get a list of HUD-approved housing counseling agencies in your area.