For most, owning a home was a major goal and accomplishment. Thus, when your ability to keep your home is jeopardized by the financial troubles you are facing, it can feel like your dreams and achievements are crumbling. Foreclosure is a process that no homeowner wants to think about; however, it is a reality for some and should be understood.
Foreclosure process
In the state of Florida, there are only judicial foreclosures. This means that the lender is required to get a court order. Once a borrower has defaulted on a certain number of mortgage payments, the lender has the ability to initiate foreclosure proceedings.
If a lender begins the foreclosure process, the homeowner will receive notice of their default and a timeframe to correct their nonpayment. If the nonpayment is not corrected in that timeframe, a foreclosure notice will be sent to the owner.
While this overwhelming news, there are legal options that could be taken to prevent the foreclosure proceedings; however, if nothing is done after the foreclosure notice, then an eviction notice will follow the sale of the home. This means the homeowner is no longer the owner and they must vacate in the timeframe set in the notice.
Preventing foreclosure
Following a default notice, a homeowner has the ability to work with their lender to address their nonpayment. Putting it towards the backend of your mortgage or creating a payment plan could stop a foreclosure.
Additionally, when a homeowner files for bankruptcy, this puts a pause on the process until the bankruptcy is finalized. During that timeframe, a homeowner may work out a plan with their lender to bring their payments current.
Finally, Florida allows for the right of redemption. This allows you to redeem your property even after a foreclosure sale. This can be accomplished by paying off the purchase price of the home in addition to the costs and interests.
Facing a foreclosure is a very overwhelming and stressful situation. In order to ensure you are protecting your rights, it is important to gain legal guidance about your options.
