Foreclosure Process in Florida
Pre-Foreclosure
1. Missed Payments:
The foreclosure process typically begins when a homeowner misses mortgage payments. Lenders usually wait until payments are 90 days past due before initiating foreclosure proceedings.
2. Notice of Default:
The lender sends a Notice of Default to the homeowner, indicating the delinquency and the intention to foreclose if the debt is not settled.
3. Right to Cure:
The homeowner has a chance to cure the default by paying the overdue amount, including any late fees before the foreclosure process formally begins.
Foreclosure Initiation
1. Lis Pendens:
The lender files a “lis pendens” (a notice of pending legal action) with the county court, which officially starts the foreclosure process. This public notice informs interested parties that the property is subject to foreclosure.
2. Summons and Complaint:
The lender files a foreclosure complaint, and the homeowner is served with a summons and complaint, detailing the reasons for foreclosure and the amount owed.
3. Response Period:
The homeowner has 20 days to respond to the complaint. Failure to respond may result in a default judgment in favor of the lender.
Foreclosure Litigation
1. Mediation:
In some cases, the court may order mediation to explore potential solutions, such as loan modification, repayment plans, or short sales, to avoid foreclosure.
2. Court Proceedings:
If mediation fails or is not ordered, the case proceeds in court. Both parties present their arguments, and the judge decides whether to issue a foreclosure judgment.
3. Foreclosure Judgment:
If the court rules in favor of the lender, a foreclosure judgment is issued, specifying the total amount owed and setting a date for the foreclosure sale.
Foreclosure Sale
1. Notice of Sale:
The Notice of Sale is published in a local newspaper for two consecutive weeks, detailing the date, time, and location of the auction.
2. Auction:
The foreclosure auction is held at the county courthouse. The property is sold to the highest bidder, who must pay a deposit immediately and the remaining balance within a specified period.
3. Certificate of Sale:
The successful bidder receives a Certificate of Sale. If no one bids, the property reverts to the lender and becomes Real Estate Owned (REO).
Post-Foreclosure
1. Certificate of Title:
After the sale, a Certificate of Title is issued to the new owner, officially transferring ownership.
2. Right of Redemption:
Florida does not have a statutory right of redemption period after the foreclosure sale, meaning homeowners cannot reclaim the property by paying off the debt once the sale is finalized.
3. Eviction:
If the former homeowner does not vacate the property voluntarily, the new owner must file for a writ of possession to evict them.
