State of Florida Foreclosure Process

Home foreclosures in Florida require court interaction.

Foreclosure is the process by which a mortgage holder takes possession of a property to satisfy an unpaid debt. Under Florida's judicial system of foreclosure, a mortgage holder must file a lawsuit with the court to initiate this process, thus putting into motion a series of steps dictated by law. During the foreclosure process, both the mortgage holder and borrower have certain rights and responsibilities.

Default Notice

Florida law dictates that a mortgage holder, or lender, must provide the borrower a notice of default prior to filing a foreclosure lawsuit. This notice must include information detailing the status of the mortgage, amount owed, and contact information for the lender. This notice must be provided to the borrower 30 days prior to the filing of a Lis Pendens (Latin for suit pending).

Lis Pendens

If the borrower does not remedy the mortgage delinquency during the 30-day time frame, the lender can file a "Lis Pendens", which indicates the lender's intention to file a foreclosure lawsuit. The court will then notify the borrower of the Lis Pendens. The borrower must respond to the notice and provide answers, defenses or counterclaims within 20 days or the court will issue an Order of Default. A small percentage of borrowers respond and require a hearing on the foreclosure action.

Foreclosure Action

If an Order of Default is issued, the lender files the necessary paperwork to prove his case, which includes a copy of the original mortgage, copy of the original note, any title or assignment information available. A Notice of Action must then be published in a major newspaper, offering details about the foreclosure and a demand for payment. This notice must appear at least twice during a twenty-day period. At the conclusion of this time frame, a Foreclosure Action is issued by the court.

Sale of Property

With a Final Judgment of Foreclosure in place, the court will direct the clerk of the court to schedule the property to be sold at public auction to satisfy the debt. The borrower has the Right of Redemption until the day of the sale. This allows the borrower to satisfy the past due mortgage and cancel the foreclosure process. Once the property has been sold, the borrower has no further rights.

Deficiency Judgment

A Motion for Deficiency Judgment may be included with the foreclosure action, which holds the borrower liable for any debt remaining after the sale of the property at auction.

References

• Florida State Senate: Chapter 702, Foreclosure of Mortgages and Statutory Liens