Home foreclosure can result from two causes:
- The first and most common is when your lender exercises his rights when a breach of the loan conditions has occurred. This breach is usually, but not always, a failure to pay your monthly payments. It can also result from a failure to maintain the property in good condition.
- The second event that can trigger a foreclosure notice is a failure to pay your property taxes. This gives local government the right to take ownership and auction the property to recover the outstanding debt.
In either case there is no attempt to market the property, so the sale price is often less than you might get otherwise. There is often a shortfall, especially in the case of a mortgage loan. You will be responsible for that shortfall that can often lead to a bad credit rating, or worse, a chapter seven bankruptcy. This can take years to recover from, and is often unnecessary.
Even if there is no shortfall, as is often the case with a foreclosure by local government, you will still fail to realize the returns the property could bring with good marketing.
Florida Foreclosure
As in most states, foreclosures in Florida are initiated by court proceedings. In Florida, this process usually takes from four to six months. The important thing to remember is that in every state, the laws differ to some extent. That’s why you must use foreclosure workout specialists with a knowledge of your area’s laws if you want to keep your home. And while people have stopped foreclosure literally hours before the sheriff came to enforce an eviction notice, you still have hope.
Avoiding Foreclosure in Florida
The process begins when your lender, local government or any other parties with a lien over your property files a court action and records a notice of impending lawsuit (Lis Pendens) to take possession of the property. Immediately afterward, you and other people directly affected will receive notification by mail or publication. If you do not respond within a specified period, the county clerk may find you in default and the party who filed the motion, usually your lender, can ask the court to make a final ruling. If the court rules against you, you will be given a foreclosure sale date unless you make full payment of all outstanding monies owed within a specified time. Keep in mind you can stop the foreclosure right up until the date of sale by paying the full amount owed.
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