It is highly important that you understand the entire foreclosure process in Florida so that it becomes easy for you to navigate your own home’s foreclosure.
Before we begin…
What Actually Is Foreclosure?
Foreclosure happens to be that legal procedure through which lenders take back the property that was secured against a loan, usually after the borrower has stopped making payments due.
Foreclosure is very difficult. But you need to know that it’s not the end.
When you have an idea about how foreclosure works in Florida, you will be in a better position to navigate the process for your own home and make ends meet as well.
What Are The Basic Stages of The Foreclosure Process in Florida?
Foreclosure has a few important stages and works differently in states around USA.
Two different ways that properties can be foreclosed upon in different states are: judicial sale or power of sale.
Call us at (561) 370-8335 or visit our contact page to let us help you learn about the foreclosure processes here locally in Palm Beach County.
One thing you should know that foreclosure usually doesn’t go to court unless it has been 3-6 months of missed payments. This is usually the case but cases can be different at times. Perhaps you lender starts off by sending you notices when your payments start getting overdue.
Under Judicial Foreclosure:
- Your mortgage lender has to file a suit in the court.
- You will receive a letter from the court demanding you to make overdue payments.
- If the loan is valid, you will generally have about 30 days to bring payment to the court to avoid foreclosure.
- If you don’t pay during the specified period, judgment will be ruled and the lender has the right to request the sale of your property – through an auction.
- After the property has been sold, you will receive an eviction notice demanding you immediately vacate the property.
Under Power of Sale (or Non Judicial Foreclosure):
- Here you receive a notice from the lender demanding payment, this doesn’t involve the court but the process can fall under judicial review.
- After the waiting period is over, a deed of trust is drawn up and your property is transferred to a trustee for control.
- The trustee is liable to sell your property for the lender through an auction (you receive a notice for that).
Anyone with an interest in your property is notified of the foreclosure process.
For example, a bank or contractors with liens against a foreclosed property are entitled to collect from the proceedings of the auction.
What Happens After A Foreclosure Auction?
Once the foreclosure is complete the loan is paid off and the sale process proceeds.
A deficiency judgment is issued against the borrower if the amount of the sale at the auction isn’t enough to pay off the entire loan amount.
A deficiency judgment is when the bank passes a judgment against the borrower for the funds that are still owed to the bank on the loan amount even after the foreclosure sale.
In different states the amount of a deficiency judgment is limited to the fair value of the property at the time of sale while other states assess the full amount of the loan against the borrower.
If you want to know more about the different laws of deficiency click state by state deficiency judgement laws,
It’s best if you can avoid an auction following a foreclosure. Talk to your bank or call a trusted real estate firm likes ours at Home Solutions FLA so that you can negotiate the amount of loan to avoid a foreclosure.
Experienced investors can be of great help to you while negotiating with the bank to lower the amount you owe them or perhaps to eliminate it entirely, even if your property is worth less than what you owe.
If you want to sell any property in Palm Beach County, we can help you.
We buy houses in Palm Beach County Florida from people who want to sell fast.
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Other Foreclosure Resources For Palm Beach County Florida Homeowners: