Are you afraid of foreclosure?
ARE YOU AFRAID OF FORECLOSURE?
Foreclosure is the legal process by which a lender repossesses a property in which the borrower has defaulted on the payments. The foreclosure process is a long, complicated and costly one. The lenders can sue the borrower to collect the amount owed and to claim the title to the property. In some states (Connecticut, New Hampshire and Vermont) the court could order the borrower to pay the amount owed in a specific period of time.
Under Florida law, the initial steps in a foreclosure include the notice of default and the Lis Pendes. The notice of default is a written notice from the mortgagee to the mortgagor. It specifies the amount of money that is late and how late the amount of money is. Essentially, the notice warns that a foreclosure is imminent, unless certain steps are taken. If these steps are not taken, then the Lis Pendes is filed. The Lis Pendes is the paperwork filed by the mortgagee in the courthouse. It is a statement of intention to sue the mortgagor for failing to make payments. The court notifies the mortgagor.
In Florida, the next steps in the process are the notice of action and the foreclosure action. The notice of action is posted in the local newspaper when the mortgagor has failed to respond adequately to the notice of default. In the notice of action, the mortgagee writes a demand that the loan get paid and the consequences of losing the property if the loan is not. Next, the foreclosure action occurs. The foreclosure action is filed in the county court where the property is located and states the mortgagee’s intent to evict the resident and take the property. It further announces the time and date when the property will be auctioned off.
Finally, the last step in the Florida mortgage process is redemption or the sheriff’s sale. Redemption can occur at any point in the proceedings. If the mortgagor can pay off the remainder of her mortgage completely, the process is stopped. If not, the last step in the process is the sheriff’s sale, which is an auction at the county courthouse in the relevant Florida district. The property goes to the highest bidder.
The amount of foreclosures have skyrocketed after the housing bubble and the banks have realized that foreclosure can be very costly to them so they are willing to negotiate with the borrower to Short Sale the property. Find out if a short sale is an option for you
Please feel free to contact us for more details on this subject.
Boneli Real Estate & Management Group, LLC your Tampa Bay real estate consultant!