Just a quick update on how the foreclosure process works here in Florida.

Foreclosures happen in Florida when ahomeowner is severely delinquent in payments or can no longer makepayments on the mortgage. Any hardship can contribute to theforeclosure process beginning: an injury preventing work, the loss of ajob, a divorce or other financial strains. Foreclosure is the processof the bank or lending institution getting the property back andreselling it to recoup their money.

Florida is a judicial state.This means that all foreclosures must use the court system forprocessing. Since banks differ and the courts are involved, theforeclosure process time line varies slightly between individual cases.The average time frame is five to six months from the beginning stepsuntil the finalization of a foreclosure.

Steps Taken to Foreclosure

Thefirst steps fall under the pre-foreclosure period. The mortgage holderis late with payment, but remain in the property while the foreclosureproceedings progress.

Notice of Default

The Notice ofDefault is the first indication of late payment. It is a written noticesent to the mortgage holder by the mortgage lender. It will state howmuch money is owed and how late the payment is. A Notice of Defaultwill state what you need to do in order to become current on yourpayments and prevent foreclosure from happening.

Lis Pendens

LisPendens is Latin for "suit pending." [1] This may refer to any pendinglawsuit or to a specific situation with a public notice of litigationin this case it is paperwork filed by the mortgage lender in the countycourthouse. It states their intention to sue the property owners ifthey do not receive the mortgage monies. The court then creates thepaperwork that notifies all parties involved about the upcoming lawsuitand the terms.

Notice of Action

Notice of Action is thenext step in the foreclosure process. When a mortgage holder cannot paythe terms stated in the Notice of Default and goes further indelinquency, a Notice of Action is posted in the local newspaper. Itstates the mortgage lender’s written demands to be paid on their loanand their intent to take back the property if the payment is not made.

Once the Notice of Action is posted, the formal foreclosure process takes place.

Foreclosure Action

Aforeclosure action, which is a lawsuit filed under the county where theproperty is located, is made. This states the intent of the mortgagecompany to evict the residents and take over ownership of the property.They will post the date and time of the auction where the property willbe sold, anywhere from three to six weeks in the future.

Redemption

Atany time before the auction of the property, the mortgage holder cantake back the property if they can pay off the mortgage in full. Ifthey can pay for the mortgage in full, the proceedings are halted andthe mortgage holders can move in and reassume ownership of the property.

Sheriff’s Sale

Thelast step of the foreclosure process is the Sheriff’s sale. This iswhere the property is auctioned off to the highest bidder at the countycourthouse. The price is low to begin, but can escalate if it is in ahot location. Once another bidder has won the auction and the property,the former mortgage holder has terminated all of their rights to theproperty. Within ten days of the successful sale, the title istransferred to the winning bidder.