The Florida foreclosure process has many unique approaches that you should learn before you go through it. Foreclosure is a rough time. It can be frustrating and stressful, with a negative impact on credit that may last 7 to 10 years. Limiting your options in the future with loans for a house or college education. When foreclosure action by the bank is successful, it will begin looking to evict you as soon as possible. Whether you have any place else to go if evicted will depend on your circumstances at the time.
Foreclosure is not the end of the world. There are currently 220,124 in Florida. In June 2021, one out of every 7,251 housing units received a foreclosure filing.
Foreclosure can be a stressful and frustrating experience, but it’s not the end. You are not alone!
What is a Foreclosure?
Foreclosure is when the bank takes back your home for non-payment.
Foreclosure is not a good thing. It can result in detrimental credit consequences, preventing you from borrowing money going forward. Your credit score may be impacted for up to 7-10 years, and the adverse effects will prevent you from potentially purchasing a home or education. The bank that advances this foreclosure action has the legal right to evict tenants as soon as they can and seize property to sell off in order to pay off what was owed on your mortgage. Foreclosure doesn’t always mean you’re evicted or homeless– it means that your occupancy of land is terminated so that someone else who has rights to it can occupy it now instead of you.
Foreclosure is a common financial measure. It’s not always imminent, but it leaves the homeowner homeless and forces them to go through an extensive legal process.
Missing just one mortgage payment in Florida will not result in foreclosure. Rather, the bank can institute proceedings after 120 days of delinquency have passed. The penalty for missing a single mortgage payment is around 5%.
Here is some more detail on judicial foreclosure:
Your lender must file suit with the court.
You’ll receive a letter demanding payment from the court.
Confirming the loan is valid, you must submit payment to the court within 30 days to avoid foreclosure.
If no payment is made during this period, a judgment will be submitted and the mortgage lender can request the possession and sale of your property. Most often through an auction.
Once the property is sold through auction, the sheriff can serve an eviction notice and immediately ask you to leave the property. Giving you no time to collect your belongings.
Spectrum Houses are not giving up. We specialize in purchasing difficult-to-sell properties, one of which is homes that were facing foreclosure. If you contact us before the sale date hits and your property goes publically available for purchase, we will make a fair cash offer to help keep your home.
If you need help avoiding foreclosure, please give us a call at (786) 309-2338. Solutions include modifying your loan to pay less per month, selling the property on your own via short sale or listing with a third-party realtor, having the bank take legal ownership of the home, and allowing you time to find another place to move.
Need to Help in the Process? Fill out our Contact Form today to receive a call today.
Outside of Florida: Under Power of Sale:
In many areas outside of Florida, foreclosure goes through “power of sale” or “non-judicial foreclosure.” In this scenario, parties with an interest in the property must be notified (as well as judicial foreclosure). Parties with an interest typically include contractors, other bank lendings, and city liens.
Power of sale foreclosures:
When the bank notifies you of your late payments, it can file for foreclosure to reclaim ownership. The courts are not involved unless requested by the borrower.
After the waiting period closes, a deed of trust is written and control of the property is moved to a trustee. drawn up and control of your property is transferred to a trustee.
If the bank’s legal claim is successful, it will sell the property in a public auction as soon as possible.
What Happens After A Foreclosure Auction
When the process is completed, the loan balance is paid in full with the proceeds from selling the property at auction. In some cases, if less money than needed to cover the loan can be taken from the auction sale of a house. Repayment of either part or all of that shortfall can result in a deficiency judgment being issued against you by your lender.
For Florida, deficiency judgments are granted.
In Florida, the lender may seek a deficiency judgment within 1 year from the date of foreclosure for residential properties with no more than four dwelling units. The reverse is not true. If the bank sells for more than owed, it keeps the difference but if gains come later, they go to the debtor instead.
Stopping foreclosure is essential. Contact the bank about a solution, and consider contacting Spectrum Houses to invest in your home that will buy it before you receive a ruling on the foreclosure action.
With the help of experienced investors, you can negotiate with banks to lower the amount you owe in a sale. Make a short sale offer, and connect with a short sale negotiator and foreclosure attorney.
Scams are often too good to be true. Companies may ask you for a fee for “counseling services”, take your property title or steal payments from you, and more. All under the guise of helping with your foreclosure.
If you need to sell a property in Florida, Spectrum Houses are here to help.
The process in Florida has changed over time and will continue as there are new laws on the books. Your lender will send a letter stating that your home loan has been placed into default. And informing you of the conditions to stay in it. If they are not met, foreclosure on the property is imminent within 90 days – depending on what type of mortgage it was initially.
Need to Help in the Foreclosure Process? Fill out our Contact Form today to receive a call.