Florida Foreclosure Law

Below is an outline of the foreclosure process for the state of Florida. Contact an attorney who specializes in foreclosures to discuss your specific situation.

 



The Process

In Florida, mortgages must be foreclosed by filing a lawsuit in court. As in any lawsuit, the borrower must be served with notice of the lawsuit and must be given an opportunity to appear and defend his or her rights. The lender will try to show that the borrower is in default, and that foreclosure is therefore necessary under Florida equity law. Florida is unusual in that the legislature has passed very few statutes regulating foreclosures. The basic statute, chapter 702.01 reads as follows:

All mortgages shall be foreclosed in equity. In a mortgage foreclosure action, the court shall sever for separate trial all counterclaims against the foreclosing mortgage. The foreclosure claim shall, if tried, be tried by the court without a jury.

Counterclaims by a borrower may be tried by a jury, but they must be tried separately from the main foreclosure lawsuit.

In Florida because the lawsuit to foreclose on a borrower is a suit in equity, it is impossible to obtain an injunction to stop what is, in essence, a court ordered sale. In addition, the court can order the sale at a low price. A sale can be set aside if there is an error in the procedure to foreclose; however, it cannot be set aside due to the low sale price. The court order commanding foreclosure will specify how the foreclosure must take place, and the foreclosure must take place on those terms.

After the sale takes place, the sale terms must be confirmed by the court that ordered the sale. If the terms of the sale order are met, title in the buyers name can become complete by filing a certificate of title. At the discretion of the court, junior lien holders can redeem the property, up to the time of the confirmation of the sale. The equity of redemption is cut off when the sale is confirmed, but it exists prior to that time, which means the borrower can save the property from foreclosure by coming up with the money before confirmation.

Deficiency

A separate action for a deficiency must be filed within four years after the foreclosure sale

 

 

Are you stressed about NOT being able to make your Mortgage Payments?

Millions of people are currently facing this issue and the number is growing larger everyday. There are a number of options which may help you avoid the hardship and embarrasement of foreclosure. Visiting our web site is a good first step towards finding a solution for you and your family.

Do you OWE MORE than your home is worth? The Worst thing to do is Nothing !

If you do nothing, you will not only lose any possibility of saving your home but you will also completely destroy your credit for many years to come. By taking action early you may save both your home and your credit. Contact your lender today before it's too late!


You have options:

 

If your financial situation is temporary (e.g. new job, job loss, hours cut, divorce, illness, injury, etc.):

  • Reinstatement: Your lender may be willing to accept the total amount owed in a lump sum by a specific date.

  • Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time.

  • Repayment plan: You may be able to get an agreement to resume making your regular monthly payments, plus a portion of the past due payments each month until you are caught up. Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time.

If your situation is long-term or will permanently affect your ability to bring your account current:

  • Mortgage modification: If you can make payments on your loan, but don't have enough money to bring your account current or you can't afford your current payment, your lender may be able to change the terms of your original loan to make the payments more affordable.

  • Partial Claim: If your mortgage is insured, your lender might help you get a one-time interest-free loan from your mortgage guarantor to bring your account current. You may be allowed to wait several years before repaying this loan.

If your mortgage is insured, your lender might help you get a one-time interest-free loan from your mortgage guarantor to bring your account current. You may be allowed to wait several years before repaying this loan.

What to do if keeping your home is not an option:

  • Sell: If you can no longer afford your home, your lender will usually give you a specific amount of time to find a buyer and pay off the total amount owed. You will be expected to use the services of a trained Realtor who can aggressively market the property.

  • Short Sale: Is when you sell your property for the less than you owe and we ask your lender to discount your pay off. When you sell your home as a short sale all of the closing costs including real estate commisions may be included in the amount your lender will pay.

  • Assumption: A qualified buyer may be allowed to take over your mortgage, even if your original loan documents state that it is non-assumable.

  • Deed-in-lieu of foreclosure: As a last resort, you "give back" your property and the debt is forgiven. This will not save your house, but it is less damaging to your credit rating. This option might sound like the easiest way out, but it has limitations as you usually have to try to sell the home for its fair market value for at least 90 days before the lender will consider this. This option may not be available if you have other liens, such as second mortgages, and IRS or state tax liens.

Do not underestimate how important it is to Minimize the Damage to your Credit !

Your future ability to purchase items, rent or buy a home, and do other things often requires a credit check. Consumer credit agencies and your lender can help you explore solutions to keep your credit rating from getting blemished. Maintaining good credit is even important for job hunters as new employers often do credit checks.