It is important that you understand the foreclosure process so that you can easily navigate your own house’s foreclosure process.
Before we dive in…
What is foreclosure?
Foreclosure is a legal process that money lenders take to get back the property that has been kept against a loan and the borrower has stopped making payments.
Foreclosure is serious business.
When you know about the foreclosure process in Florida it will give you all the important knowledge that you need to navigate your own house’s foreclosure process.
The Basic Levels of Foreclosure
All foreclosure processes have a few basic stages but they differ from state to state.
The two basic ways that are used to foreclose upon a property are: judicial sale or power of sale.
Call us or read through our contact page so that you can know the basic steps of foreclosure process that happens in Florida.
In all scenarios, foreclosure doesn’t go to court until the borrower has missed payments for 3-6 months. Usually the lender has sent out notices that you are overdue in your payment.
With Judicial Foreclosure:
The mortgage lender has to file a suit in the court.
You will receive a letter from the court asking for payment.
If the loan is valid, you will have a 30 day time to clear your payment to the court to avoid foreclosure to bring payment
If you cannot make payments during the payment period, judgment will be entered and the money lender will request the sale of your property – typically through an auction.
Once the property has been sold, the sheriff serves you an eviction notice that forces you to immediately vacate the house.
Under Power of Sale:
The money lender will directly serve you with papers that demand the payment. In this scenario the courts are not required but the process is subjected to judicial review.
After the established waiting period is over a deed of trust is drawn up and the control of your property is transferred to a trustee.
The trustee can then sell your property for the lender at a public auction for which an auction time has already been e.
All those who have an interest in the property have to be notified for both foreclosures. For example, any contractors or banks that have an interest in the payment will be notified to collect their payments from the auction.
What Will Happens After A Foreclosure Auction?
The money is paid off with the auction sale proceedings after a foreclosure is completed.
In situations where the sale of the property doesn’t pay off the loan, a deficiency judgment is issued against the borrower. A deficiency judgment is where the bank rules against the borrowers for the remaining funds that are owed by the borrower even after the sale.
A number of states actually limit the amount that is owed in a deficiency to make the fair value when the property is sold while others allow assessing the full amount against the borrower.
Here’s what you need to know about state by state deficiency judgement laws, since every state has different laws.
It is best if you can avoid foreclosure auction. And instead it’s better if you can call the bank or preferably us at Home Solutions FLA to help you with avoiding a foreclosure.
Experienced investors will be able to negotiate with the bank directly to lower down the amount you owe to the lender. They can even eliminate it if your house is worth less than what you owe.
If you have a property to sell in Palm Beach County, we can help.
We buy houses in Palm Beach County from people who need to sell fast.
Call us anytime at (561) 370-8335 or
fill out the form on this website today! >>