Florida foreclosures go through a court, so the process has stages, and you can act at every one. The timeline varies a lot and can take a year or more from the first missed payment.
Florida foreclosures go through a court, so the process has stages, and you can act at every one. The timeline varies a lot, and it can take a year or more from the first missed payment.
Stage 1: Missed payments
Late fees and calls start. Your loan documents generally require a notice before the lender can accelerate the loan. This is the best time to ask about modification or forbearance.
Stage 2: Notice of default or demand letter
The servicer demands the past-due amount by a deadline. Paying it brings the loan current.
Stage 3: The lawsuit
The lender files a foreclosure complaint in court, and you are served with a summons. You generally have 20 days from service to respond, and the summons states your deadline. Do not ignore it.
Stage 4: Judgment
If the case moves forward, the court enters a judgment and sets a sale date.
Stage 5: Auction
The clerk sells the property to the highest bidder. After the sale is completed, your right to reclaim the home is generally gone.
What you can do at each stage
Early: catch up, modify the loan, or sell.
After the lawsuit starts: respond, consider an attorney, and keep asking the lender about options.
Before the sale is completed: you can generally still sell the house or settle.
What to do this week
Find out which stage you are in and what dates are on your papers. Send me the address and the dates, and I will tell you how much time you have.
Foreclosure deadline: Do not treat the auction, certificate of sale and certificate of title as interchangeable. Under Florida Statutes section 45.0315, redemption generally ends at the later of the filing of the certificate of sale or the time specified in the foreclosure judgment. A signed sale contract alone does not stop foreclosure. Have your attorney confirm the deadline and obtain any needed postponement.
Originally published on Equity Edge Orlando. Reviewed for this Substack edition.