Foreclosure Information About Houses in the State of Florida

Many of Florida's foreclosures are vacation condos.

CNBC.com reports that Florida had the ninth highest foreclosure rate in the country, as of early 2011. Florida law requires lenders obtain court approval for a foreclosure. "The Wall Street Journal" reported Florida foreclosure cases have multiplied more than ten-fold in two years in some courts, resulting in some hearings being time-managed by judges to under a minute.

Process

The foreclosure process in Florida begins with the recording of a lis pendens, a notice of lawsuit, and sending a copy of it along with a summons and complaint to the borrower. If the borrower files a response, a hearing is scheduled. If not, a default is granted and the lender seeks a summary judgment. Once a foreclosure has been approved, the court clerk schedules the property for sale.

Deficiency Judgment and Eviction

Florida is a deficiency judgment state: It allows foreclosing lenders to get a judgment against borrowers for any difference between the sales price of the property and the unpaid mortgage balance. This is a separate court action filed for by the lender after the foreclosure process has been concluded. Eviction of an owner-occupant does not require separate court action. The court approving the foreclosure will also issue a writ of possession to the new owner once title has changed hands. The writ is in turn given to the sheriff for posting. A day after posting, the sheriff is authorized to forcibly evict the former owner.

Time Frame

According to online real estate website RealtyTrac, a foreclosure in Florida may be dispatched in 135 days. However, this reflects the legally required minimum time frame. Mortgage servicer Lender Processing Services reports the actual time frame for a foreclosure nationally averaged 492 days, as of late 2010.

Statistics

One in every 409 households in Florida suffered a foreclosure in 2010, according to CNBC.com. Over 20,000 properties in total were the subject of foreclosure filings. The only good news to report is that filings declined 15 percent from December 2010 to January 2011 and declined over 50 percent from January 2010 to January 2011.

References

• CNBC.com; States With the Highest Foreclosure Rates; February 2011
• "The Wall Street Journal"; A Florida 'Rocket Docket' Blasts Through Foreclosure Cases; Michael Corkery; February 2009
• Florida State Legislature: The 2004 Florida Statutes
• Connecticut General Assembly; Comparison of State Laws on Mortgage Deficiencies and Redemption Periods; James Orlando; July 2010
• Olympia Title and Escrow Corporation: The Foreclosure Process
• RealtyTrac: Foreclosure Laws and Procedures by State

Resources

• LPS Mortgage Monitor: November 2010 Mortgage Performance Observations