What Is Pre-Foreclosure?

Pre-foreclosure is a period that starts when a lender files a default notice because of missed mortgage payments and ends when the lender takes possession of a property. It is a critical window of time when you, the homeowner, have the opportunity to halt the process by challenging the foreclosure, settling the outstanding mortgage balance, or negotiating an alternative arrangement with your lender.

While “pre-foreclosure” may sound stressful, this time is not devoid of hope. This phase provides homeowners with a chance to regain their financial footing. It’s an opportunity to take proactive steps to prevent the loss of your home. From payment plans to loan modifications, many strategies are at your disposal.

Loan Lawyers, a respected Florida foreclosure defense, debt defense, and bankruptcy law firm, stands ready to offer you the legal advice and representation you need during pre-foreclosure. With years of experience and deep knowledge of Florida’s foreclosure laws, we can help you understand your rights, explore your options, and devise a strategy best suited to your situation.

Contact us today for a free consultation and take the first step toward resolving your pre-foreclosure situation.

Understanding the Steps in Foreclosure

If a borrower is 120 or more days late with a mortgage payment, the lender can file a notice with the court and begin foreclosure proceedings. This is the point where the process enters pre-foreclosure.

In Florida, foreclosures are judicial. The lender must file a notice that they’re filing a lawsuit with the courts. The notice is called lis pendens. After this document is filed, the homeowner should receive notice of the action and a summons. They have 20 days to reply, or they risk the court granting a default judgment in favor of the lender.

If no summary judgment is granted, the foreclosure goes to trial. If the lender wins, the court sets a sale date for 20 to 90 days after the final judgment date. Usually, foreclosure sales are scheduled 30 days after the final judgment.

Following the final ruling, the court clerk issues a notice of sale. The notice contains the date, time, and location of the sale. It must be published for two consecutive weeks. The second date must appear at least five days before the scheduled sale date. Sales generally occur at 11 a.m. at the county courthouse. The winning bidder must provide a minimum 5 percent deposit onsite. The remainder of the balance must be satisfied by the end of the day.

If a sale is undisputed, the property’s ownership is transferred to the new owner after 10 days, and the former owner loses the right of redemption – the right to regain ownership of the property.

Are There Other Laws Protecting Florida Homeowners Against Foreclosure?

The Florida Fair Foreclosure Act (FFFA) offers some benefits to homeowners. One of the advantages of the FFFA is that it has provisions to reduce the deficiency judgment fee. A deficiency judgment is a court order mandating the borrower to pay back the difference if the sale price of the foreclosed home does not cover the total debt. The FFFA reduces the fee charged for filing a deficiency judgment, easing some financial strain on homeowners facing foreclosure.

The FFFA also made changes to service requirements. It allows for service of process in foreclosure actions to be served electronically, which can provide quicker notice and response times for homeowners, allowing them to take action to defend their rights more rapidly.

However, it is essential to note that the benefits of the FFFA to homeowners might be subjective and can depend on the specific circumstances of the foreclosure. It is always advisable for homeowners to seek legal counsel to fully understand the implications of the FFFA and explore all available options.

Understanding the Statute of Limitations Governing Florida Foreclosures

In Florida, the statute of limitations for foreclosure is five years. That means a lender has five years from the date of default to initiate legal proceedings for foreclosure. If the lender does not start the foreclosure process during this time, they lose the right to foreclose on the property using the unpaid balance of the defaulted loan as a cause of action.

It is important to note that the statute of limitations does not prevent lenders from pursuing the unpaid balance of the loan through other legal means, such as a lawsuit to obtain a money judgment.

How Can an Attorney Help Me Avoid a Foreclosure?

When you are facing foreclosure, the situation can feel scary and confusing. Our foreclosure defense attorneys can be powerful allies, standing with you every step of the way and working to protect your rights.

One of the first things our attorneys can do is review your loan documents. We’ll comb through every detail, looking for any errors or legal issues we can use in your defense. Lenders sometimes make mistakes, and if your attorney uncovers one, it could provide an avenue to challenge the foreclosure.

Our attorneys can also guide you through foreclosure alternatives. These can include loan modifications, short sales, or even bankruptcy, which can often provide a way to keep your home. We understand these options inside and out. We can help you evaluate each one based on your specific situation.

If your case goes to court, our attorneys will be prepared to aggressively represent your interests, putting forth a strong defense. We know how to navigate the legal process, file the necessary paperwork, and argue effectively against the lender’s attorney. Representation can be crucial, particularly in a judicial foreclosure state like Florida.

Moreover, our attorneys can communicate and negotiate with your lender for you. That can remove some of the emotional stress of dealing with the situation and can often lead to more favorable outcomes. Our attorneys have extensive experience in these negotiations and understand what tactics and strategies work best.

Contact the Foreclosure Defense Lawyers at Loan Lawyers Today

If you are facing pre-foreclosure or foreclosure proceedings, don’t delay getting legal help. Contact Loan Lawyers, your trusted Florida foreclosure defense lawyer. Our experienced team has helped thousands of South Florida homeowners fight foreclosure. We’re ready to help you, too.

We know every situation is unique, so we will take the time to understand your circumstances and build a personalized strategy to protect your home. Let us put our experience, knowledge, and commitment to work for you. You do not have to face foreclosure alone. Reach out to our Fort Lauderdale foreclosure defense lawyer today for a free consultation, and let us start the process of keeping your home, together.