Florida is known as a judicial foreclosure state. This means the mortgage company is required to get approval from the court before they can proceed with a foreclosure process. According to the Florida Foreclosure laws, Florida courts can deny the loan servicer the right to foreclose if they don’t meet certain criteria.
Lenders initiate judicial foreclosures by asking the court to allow a foreclosure sale. After a lender files their initial lawsuit, you typically have 20 days to file a response with the court. The lender can request a default judgment from the court if you don’t respond in time, which will most likely be granted. A default judgment would allow the lender to proceed with the foreclosure sale.
If you decide to file a response and fight back in court, your foreclosure case will proceed to litigation.
During the trial, you can provide the court with evidence to demonstrate that the repossession should not be allowed to proceed because of the following:
- The lender did a wrongful foreclosure
- The lender cannot prove it is the rightful owner of your mortgage loan
- The mortgage servicer made a substantial error in handling your loan
- The statute of limitations for a foreclosure or default judgment has passed. According to Florida’s foreclosure laws Fla. Stat. § 95.11(2)(c), the statute of limitations on a foreclosure in Florida is five years.
- The lender’s representative cannot prove they actually reviewed a mortgage agreement before robo-signing
How Can I Save My House From Foreclosure In Florida?
Loan servicers throughout the U.S. must comply with strict regulations and federal foreclosure laws when preparing mortgage agreements or pursuing judicial foreclosures. Most borrowers sign promissory notes and mortgage agreements in Florida when purchasing residential homes. These are legally binding documents that grant homeowners certain contractual rights in addition to various state and federal provisions. Under Florida foreclosure laws, foreclosure cases must be presented in the circuit court where the property is located.
- Receive a notice or pre-foreclosure “breach letter” – During the pre-foreclosure stage, your loan servicer must send you a notice known as a “breach letter.” The notice must inform that you are past due on your mortgage payments, highlight your options for avoiding foreclosure action, and provide at least 30 days to pay the debt before the bank can initiate foreclosure.
- Receive loss mitigation opportunities – If the home is your primary residence, loan servicers are federally required to contact you with information about your loss mitigation options before foreclosure. These options include repayment plans, mortgage loan modifications, or temporarily pausing payments.
- Respond to foreclosure proceedings in court – Loan servicers may only begin foreclosure sale proceedings after you are 120 days past due on your mortgage payments. Once a foreclosure lawsuit has been initiated, you have 20 days to respond to the court to avoid a default judgment.
- Attend hearings: After sending your answer, the courts will set a date for a preliminary hearing. At this hearing, you will present your defenses and explain your side of the story.
- Consult with a foreclosure defense lawyer: An experienced foreclosure lawyer can help homeowners fight for their homes. Homeowners also have the right to know their options beyond repossession and choose the more suitable options, including the following:
Pay off the mortgage loan or missed mortgage payments to avoid foreclosure – Depending on the specifics of your loan, you may have the right to reinstate your loan before a foreclosure sale. You can also “redeem” the property by paying off the full amount of the loan before either the time specified on the foreclosure judgment or when the clerk files the certificate of sale, whichever is later.
File for bankruptcy – If you file for bankruptcy, lenders cannot continue with collection activities or the foreclosure process. Depending on the circumstances, you may be able to delay the repossession long enough to get current on your payments or develop a long-term repayment plan to save the property.
What is the Established Florida Foreclosure Sales Process?
The foreclosure procedure in Florida begins with the lender asking the court to allow the foreclosure to proceed. If the court allows it, the foreclosure sale typically must occur within 20 to 35 days of the judgment. Foreclosure sales are conducted as auctions that are open to the general public. Lenders are required to publish notices of the foreclosure sale in local newspapers at least once per week for two consecutive weeks, with the second notice published at least five days in advance of the sale.
At a foreclosure sale, lenders typically make bids up to the total amount still owed on the mortgage. If the amount bid is less than the total amount you still owe, the lender can seek a deficiency judgment. This would require you to pay the difference. However, if a third-party bidder offers more than you owe on the property, you are entitled to any surplus money from the sale.
The entire foreclosure process ends when the court clerk files the certificate of sale or the time stated in the foreclosure judgment runs out. This is when you no longer have the chance to buy back your residential property. The lender can then file for a writ of possession, and you must leave the property.
What Are The Federal Mortgage Servicing and Foreclosure Protection Laws? | Fair Debt Collecting Practices Act
If you are in default on your mortgage, when it comes time for the bank to collect on the loan, there are specific laws that the mortgage servicer has to follow. These laws protect consumers from abusive, deceptive, misleading, or unfair tactics and are not only applicable to Florida but across the whole country. Learn more about the Fair Debt Collection Act here. (12 C.F.R. § 1024.30, 12 C.F.R. § 1024.39, 12 C.F.R. § 1024.40)
More Florida Foreclosure Laws & Statutes
If you have more detailed questions on the Foreclosure laws and statutes associated with your particular situation, you may want to check out the official Florida Government website. However, if the legal jargon and deadlines get too overwhelming, don’t hesitate to reach out to a foreclosure attorney at Loan Lawyers for a free case review.
Contact Our Foreclosure Lawyers in Fort Lauderdale, FL Today
As a Florida homeowner, you have the right to take action before losing your home to repossession. You should be aware of the Florida Foreclosure laws that could affect your case. With the help of a skilled Florida foreclosure defense lawyer, it could be possible to prevent the bank from taking your property.
Are you facing a repossession sale on your home in Florida? If so, you’re not alone. Judicial foreclosure is unfortunately common in Florida, but there are steps you can take to protect your property. The Florida foreclosure attorneys at Loan Lawyers understand that everyone’s financial situation is unique. That’s why our foreclosure attorney is here to learn about your situation and develop a foreclosure defense strategy customized to fit your needs and comply with the Florida foreclosure laws.
The goal of our law firm is to offer you solutions, not extra financial burdens. We’re happy to provide free initial consultations and flexible fee structures. Contact Loan Lawyers today for an initial case evaluation to learn more about Florida’s laws and how our Florida foreclosure attorney can help you with the foreclosure process in Florida.
