Florida Foreclosure Laws
Foreclosure is a forced sale of real estate in order to pay a debt owed on the property. Florida is a "judicial foreclosure" state. Foreclosure proceedings must be initiated by the filing of a court action, and the court specifies the procedures by which a foreclosure sale will take place. As a general rule, a foreclosure proceeding in Florida takes about 180 days to be completed.
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Foreclosure Lawsuit
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A foreclosure proceeding in Florida begins when the lender (mortgagee) sues the borrower or homeowner (mortgagor). If the homeowner does not contest the foreclosure action, the court will enter a final foreclosure judgment within 90 days after conclusion of the period for filing pleadings in the court case. After initiating the court action, the lender may also request an order to show cause for an entry of final judgment of foreclosure. If the court finds that the homeowner has preserved the right to be heard on the lender's request for a show cause order but has failed to demonstrate a reason for not entering a judgment of foreclosure, the court will enter a foreclosure judgment.
Foreclosure Sale Notice
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The foreclosure sale procedures will be spelled out in the order of foreclosure issued by the Florida court. If the court states that a notice of sale or other legal foreclosure notice is to be published in a newspaper, the lender who initiated the court action has the responsibility for publishing the legal notice.
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Deficiency Judgment
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A deficiency judgment is a court judgment issued when property is sold for less than the loan amount. Florida law permits a lender who files a foreclosure lawsuit also to file a court action requesting entry of a deficiency judgment against the homeowner.
Right of Redemption
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The right of redemption in a foreclosure proceeding is the right of the homeowner or borrower to halt a foreclosure action on a property by paying all accumulated debts and fees. Under Florida law, the right of redemption ends with the foreclosure sale.
Foreclosure Rescue Fraud Prevention Act
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In 2008, Florida enacted the Foreclosure Rescue Fraud Prevention Act. A "foreclosure rescue consultant" is an entity that attempts to negotiate a new payment plan or to provide some other type of alternative to foreclosure. This enactment requires a foreclosure rescue consultant to issue a written agreement to a homeowner before the consultant provides any services to the homeowner. The agreement must state the homeowner's right to cancel and must advise the homeowner to contact the original lender before signing the agreement. A separate written contract must specify all the terms for the proposed transfer of property (see Resources).
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