The Foreclosure Process in Florida

The Foreclosure Process in Florida is really just the process provided so a lender can recover a mortgage debt when a borrower defaults. Even though it is a very traumatic experience for the home owner, it really is simply a matter of business to the lenders. 

How are mortgage liens treated in Florida ?

Florida is known as a lien theory state where the property acts as security for the underlying loan. The document that places the lien on the property is called a mortgage.

How are Florida mortgages foreclosed?

In Florida, the lenders go to court in what is known as a judicial foreclosure proceeding where the court must issue a final judgment of foreclosure. The property is then sold as part of a publicly noticed sale. The court with jurisdiction over a foreclosure is known as the Circuit Court. A complaint is filed in Circuit Court along with what is known a "Lis pendens". A "Lis pendens" is a recorded document that provides public notice that the property is being foreclosed upon. 

How long does it take to foreclose a property in Florida ?

Depending on the court schedule, it usually takes approximately 180-200 days to effectuate an uncontested foreclosure. This process may de delayed if the borrower contests the action, seeks delays and adjournments of hearings, or files for bankruptcy.

Can you please explain a judicial sale and what is a "power of sale"?

Judicial Sale. A judicial sale is conducted under the supervision and authority of the court system. A lender must apply to the court for the court’s permission to sell a property.  

So What’s the Difference?  

1.  The extent of Court involvement is the first major difference. In Judicial Sale County or States, the court is extensively involved in the entire process. E.g. Ordering the property to be sold, they confirm the sale procedure and hearing any application for a deficiency judgment. In contrast to this, there is virtually NO court involvement in the “Power of Sale” County or States. Can you guess which system is quicker? (i.e. people lose their homes quicker) 

2.  The Instigation of Proceedings. The way in which the Foreclosure process is started in the Power of Sale County or States is simply by way of sending a notice to the borrower and current owner of the property. This “notice” starts the process. In contrast, the Judicial Sale County or States start the process by way of a lawsuit against the borrower and all who may be liable. Can you guess which process is far more costly?

3.  The method used is to seek a “deficiency judgment”. In Judicial Sale County or States, the deficiency judgment action is started as part of the main action, or suing of the borrower via the initial law suit. In Power of Sale County or States, a lender seeking a deficiency judgment must start an action against the borrower “after” the property has been sold. So even if you lose your house, if there isn’t enough equity to cover all the costs, you may still lose your shirt as well. All the more reason to do whatever you can to avoid foreclosure like the plague.

4.  Time frames. The Judicial Sale process usually can take about six months or so before it is all over. To contrast this, a Power of Sale foreclosure can be over in only 45 days from the time the “notice” has been given. So to repeat what I mentioned above, In Florida you have about 6 months. But it will cost you a lot more money if you go through the entire process without working out an arrangement with the lender.

Is there a right of redemption in Florida?

Florida has a statutory right of redemption, which allows a party whose property has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs. There is a time limit to undertake such redemption. 

Are deficiency judgments permitted in Florida?

Yes, a deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage secures. This means that the borrower still owes the lender for the difference between what the property sold for at auction and the amount of the original loan. 

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We at FloridaForeclosureStop.com have supplied  the information on this page as a general overview. While we endeavor to have accurate and current information we cannot guarantee the accuracy, completeness, or timeliness of this information. We recommend you seek competent professional legal advice before making decisions regarding any financial transactions.

You'll want to get help before it's too late, won't you.  Please understand that time is critical. If you need to Sell your home FAST and want to get help now, simply click here and fill out your confidential application. To contact your local representative now, click here.     Kind Regards,

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