Overview of a Foreclosures in Florida

 

When you purchased your real property (whether it is a home, land, a business, etc.), you may have taken out a loan to buy it.  During the closing, you may have signed several legal documents, two of which may have been (i) a promissory note and (ii) a mortgage.  A promissory note is a document stating that you, as the borrower, promise to repay the loan.  A mortgage creates a security interest in the property, which the lender or bank uses to take possession of your real property in the event you default (fail to make) your mortgage payments.

 

Once you fail to make your mortgage payments, your lender may give you a grace period determined by the timeframe in the promissory note and mortgage before assessing late fees.  Once the grace period lapses, the lender may send you a letter (also known as a “Notice of Default”) informing you that the loan is in default.  The Notice of Default will also provide options to cure (fix) the default.  If you fail to cure the default, the lender may initiate a lawsuit by filing a foreclosure complaint.

 

The Foreclosure Process

 

In Florida, the foreclosure of a mortgage is governed by Chapter 702 of the Florida Statutes.  When a lender initiates a lawsuit, they file a Summons and Foreclosure Complaint along with a lis pendens. A Lis Pendens is simply a document in which the mortgage lender declares they are suing you (the borrower) and intend on taking your property. All of these documents are filed by the lender in the appropriate County Courthouse and recorded in the public records.

 

Service of Process and Answer Timeline

 

Once all the documents are filed at the County Courthouse, the Clerk of Court issues the summons for service upon you together with the foreclosure complaint and Lis Pendens.  Service of process is done by either a local sheriff or process server.  By law, you have twenty (20) days to file an answer to the foreclosure complaint.

 

The Foreclosure Sale

 

If the lender obtains the final judgment of foreclosure, the court will schedule the property to be sold.  During the foreclosure sale, the property is sold to the highest bidder.  In most cases, the highest bidder is usually the lender. 

 

Under Florida law, the Clerk of Court should promptly file a Certificate of Sale after the sale of the property.  You, as the borrower, will then have ten (10) days to file an Objection to the amount of the bid after issuance of the Certificate of Sale.  After ten (10) days has passed, the Clerk of Court will confirm the sale and issue a Certificate of Title to the purchaser.

 

We understand that the foreclosure process is stressful and time-consuming.  Therefore, please contact Foreclosure Attorney Kimberly M. Soto at 321.972.2279 so she can further advise you of your rights as a borrower in a foreclosure case.  The Soto Law Office, P.A. is conveniently located in Altamonte Springs, Florida near I-4, and proudly serves Brevard, Lake, Orange, Osceola, Seminole, and Volusia Counties.