JT Simons
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Mortgage Foreclosure

The Florida Foreclosure Process

Foreclosures happen in Florida when an individual or group is severely delinquent in payments or can no longer make payments on their mortgage. Any number of situations can contribute to the foreclosure process beginning: an injury preventing work, the loss of a job, a divorce or other financial strains. Foreclosure is the process of the bank or lending institution getting the property back and reselling it to recoup their money.

Florida is a judicial state. This means that all foreclosures must use the court system for processing. Since banks differ and the courts are involved, the foreclosure process timeline varies slightly between individual cases.

Steps Taken to Foreclosure


The first steps fall under the pre-foreclosure period. The mortgage holder is late with payment, but remain in the property while the foreclosure proceedings progress.

Notice of Default/Acceleration


The Notice of Default is the first indication of late payment. It is a written notice sent to the mortgage holder by the mortgage lender. It will state how much money is owed and how late the payment is. A Notice of Default will state what you need to do in order to become current on your payments and prevent foreclosure from happening. Typically the homeowner will know a foreclosure is imminent when they receive a notice that the entire mortgage is being accelerated and therefore all amounts that remain due for the life of the mortgage are now due an owing.

Lis Pendens


Lis Pendens is paperwork filed by the mortgage lender in the county courthouse for your particular Circuit Court. It states their intention to sue the property owners if they do not receive the mortgage monies. By recording the Lis Pendens, there is now a cloud on your title to the property and the public now has recorded knowledge that the foreclosure is imminent. Most of the time a Lis Pendens is filed with the Foreclosure lawsuit.

Foreclosure Action


A foreclosure action is a lawsuit filed under the county where the property is located. This is typically a four step process. First, the lawsuit is served on the homeowner with a summons. Next, the Mortgage Company files a "Motion for Summary Judgment" asking for a final judgment. Once a Final Judgment is issued, a judicial sale is scheduled where other people or companies can bid to buy your property. Most of the time the Mortgage Company wins the bidding process because they will not have to pay any actual money until the bid exceeds the amount of the mortgage. Finally, the Mortgage Company can (but usually does not) seek a money damage judgment (deficiency judgment) for the difference between the sale price and the amount of the mortgage, attorneys fees, costs, and interest.

Redemption


At any time before the auction of the property, the mortgage holder can take back the property if they can pay off the mortgage in full. If they can pay for the mortgage in full, the proceedings are halted and the mortgage holders can move in and reassume ownership of the property.

Sheriff's Sale


As discussed above,the last step of the foreclosure process is the Judicial sale. This is where the property is auctioned off to the highest bidder at the county courthouse. The price is low to begin, but can escalate if it is in a hot location. Once another bidder has won the auction and the property, the former mortgage holder has terminated all of their rights to the property. Within ten days of the successful sale, the title is transferred to the winning bidder.

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We offer attorney and lawyer services in West Pasco County FL in the following towns:
Elfers
, Holiday, Hudson, Land O Lakes, New Port Richey, Odessa, Port Richey, Trinity
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8040 Old County Road 54 - New Port Richey, FL 34653
(727) 372-4722