Florida is among the top 10 states with the most foreclosures where 1 in every 630 houses currently are in foreclosure. The foreclosure process can be extremely intimidating and even confusing. Unlike some of the other states Florida only has Judicial Foreclosures controlled by the courts. On average the foreclosure takes around 180 days from start to finish and at by the end of it you might not be the owner of the property anymore and damage your credit for the next 7 years. I know that sounds extremely scary but by understanding the process and reading some of your options for avoiding foreclosure at the end of this article, you might be able to avoid the process all together.
The Orlando Foreclosure Process
Maybe you lost your job, suffered medical complications or some other circumstances impeding you from making your payments. You’ve misses 1,2,3 payments by now and your mortgage lender has tried to reach out to you, to see whats happening. They have already sent you numerous loss mitigation letters. At this point your missed payments have been added to your credit report potentially causing a significant decrease in your score. One of the final letters you’ll receive from the lender is the “Notice of Default”. When you receive this letter the lender is letting you know that you have defaulted on your mortgage and they are planning on accelerating the amount due on the mortgage. This period is also called pre-foreclosure.
Notice of Lis Pendens
If 30 days after you receive your default letter you have not paid the balance due on the mortgage, they will refer the loan to an attorney to file a foreclosure action. The attorney will also file a Lis Pendes or “suite pending” at the county courthouse. This is a lawsuit against you for defaulting on your mortgage, demanding that you pay it in full. A Lis Pendes is public record and can be looked up at the county courthouse website. Sometimes it will be posted there before you’ve even been served.
Once you’ve been served you have 20 days to file a response with the lender in efforts to try to dismiss the case. Once you and the lender have spoken or defaulted, the bank will have their attorney file their Motion for Summary Judgment and affidavits to support that motion. This motion is a request to award them the right to sell the your property to collect the amount due.
During the trial if you are not able to successfully contest the foreclosure, or work out a loan modification or short sale, the judge will set a foreclosure sales date which is typically within 30 day after your hearing.
The notice of foreclosure will be published in the newspaper for two consecutive weeks prior to the sale. On the date of the sale, the property will be sold to the highest bidder. That bidder may also be the lender. 10 days after the sale, if no objections to the sale are filed, the clerk issues title in favor of the party that purchased the property at the foreclosure sale. At this time you are no longer the owner of the property and can be evicted.
Options To Avoid Foreclosure
The most important thing to avoid foreclosure is to communicate as early as possible with your lender that you will be having issues paying the mortgage. You might be able to work out a loan modification in order to make your loan more affordable. If you are not able to work something out with your lender you could always short sale the property. In a short sale the bank agrees to discount a loan balance due to an economic or financial hardship. Gardenia Homes can usually help by potentially purchasing your house prior to foreclosure or as a short sale.