Foreclosure is a difficult and stressful process that many Florida homeowners face when they fall behind on mortgage payments. Whether you’re struggling financially or simply want to understand your options, knowing how Florida’s foreclosure process works can help you make informed decisions.
At HHH Manor Real Estate, we specialize in foreclosure solutions and work with homeowners to explore alternatives before it’s too late. Here’s what you need to know about foreclosures in Florida.
Florida’s Foreclosure Process
Florida is a judicial foreclosure state, meaning that lenders must go through the court system to foreclose on a property. This gives homeowners a legal opportunity to respond and potentially stop the process before losing their home.
1. Missed Mortgage Payments
- After 90+ days of missed mortgage payments, the lender will issue a Notice of Default.
- The lender may try to contact you about repayment options, but if no resolution is reached, they will proceed with legal action.
2. Lis Pendens (Foreclosure Lawsuit Filed)
- The lender files a Lis Pendens (lawsuit) with the court, notifying you that the foreclosure process has begun.
- You will be served legal documents and have 20 days to respond.
- If you don’t respond, the lender will request a summary judgment, speeding up the foreclosure.
3. Court Proceedings & Judgment
- If you respond, you may negotiate with the lender or fight the foreclosure in court.
- If the court rules in favor of the lender, a foreclosure sale date is set (usually within 30–60 days).
4. Foreclosure Sale (Auction)
- The property is auctioned to the highest bidder.
- If no one buys the home, the lender takes ownership, and it becomes a Real Estate Owned (REO) property.
5. Eviction & Deficiency Judgment
- After the auction, the new owner (or lender) can evict the homeowner.
- If the sale doesn’t cover the mortgage balance, the lender may seek a deficiency judgment, requiring you to pay the remaining debt.
How to Stop Foreclosure in Florida
Even if you’re in foreclosure, you still have options to save your home or minimize financial damage.
Loan Modification or Repayment Plan
Your lender may allow you to modify your loan, adjust payments, or create a repayment plan to avoid foreclosure.
Short Sale
If your home is worth less than your mortgage balance, you can request a short sale, where the lender accepts a lower payoff amount instead of foreclosing.
Deed in Lieu of Foreclosure
This allows you to voluntarily transfer ownership to the lender in exchange for avoiding foreclosure.
Sell Your Home Before Foreclosure
If you act quickly, you may be able to sell your home traditionally before the foreclosure auction. This is often the best option to protect your credit and avoid legal complications.
Bankruptcy
Filing for Chapter 13 bankruptcy may stop foreclosure temporarily and allow you to restructure your debts. However, this should be a last resort.
The Impact of Foreclosure on Your Future
A foreclosure will:
- Remain on your credit report for 7 years, making it harder to get loans.
- Drop your credit score by 200+ points, affecting your ability to rent or buy in the future.
- Potentially lead to a deficiency judgment, meaning you could still owe money after the foreclosure.
The sooner you act, the more options you have to protect yourself.
Final Thoughts: Take Action Now
Foreclosure is not the end of the road—you have options, but time is critical. Whether you want to fight the foreclosure, negotiate with your lender, or sell your home before the auction, we can help.
At HHH Manor Real Estate, we specialize in foreclosure assistance and can guide you through the process to minimize financial loss and protect your future.
Contact us today for expert guidance on foreclosure solutions in Florida.
Explore our blog for more resources on foreclosure, probate, and liens.