Foreclosure Information for  Florida

Florida Foreclosure  Laws

Florida foreclosures are handled through the  courts. This is called a Judicial Foreclosure.  The typical timeline for a  Florida foreclosure is approximately six months.  However, in today's market the  time is usually more like 8 - 9 months.

Pre-foreclosure  Period

Florida foreclosures occur under court order.  The only exception is with abandoned properties, where a lender may take  possession once a borrower defaults.  However, they cannot take title to the property until the foreclosure sale is completed.  It  is still possible to complete a Short Sale even if you have moved out, or plan  to move out.

A complaint and notice of pending action (Lis Pendens) are filed in the public records to start the foreclosure  process. This usually happens when you are about 90 days late.  The sheriff  typically delivers a notice of the pending action to the borrower, who has 20  days to respond. If the borrower fails to respond, the lender asks the court to  make a ruling. If the court rules against the borrower, a foreclosure sale date  is set.  This process period is normally 147 days. The property must be  appraised prior to the sale. 

Notice of Sale /  Auction

The sale usually occurs at least one month  after the court rules against the borrower. The notice of sale must contain the  date, location, and terms of the sale, and it should be published for three  weeks in a newspaper. Any postponement of the sale must occur through a court  order. The sale, conducted by a court official called a master commissioner,  usually occurs at the courthouse, and the highest bidder purchases the property.  The purchaser may pay in cash or post bond to pay in installments. After the  sale, a motion to confirm is heard, and the deed is prepared and presented to  the clerk.

If the sale price is less than two-thirds of  the appraised value, the borrower has the right to redeem the property from the  buyer by paying the sale price plus interest. This redemption period lasts for  one year from the foreclosure sale date. 

Bankruptcy

If you are considering bankruptcy, you should  consult a bankruptcy attorney.  However, we can tell you this.  Bankruptcy does  not prevent a foreclosure.  You put up the house for collateral on the loan, the  lender has the right to take the house back to recover what they can.  The  bankruptcy can delay a foreclosure, but it will not prevent it.  Lenders will  usually not consider a Short Sale while you are in bankruptcy, as this is  considered to be a collection activity, and they are barred from collection  activities by the bankruptcy.