How Does Foreclosure Work In South Florida?
There are many financial hardships that may lead a homeowner to fall into foreclosure including job loss, medical issues, natural hazards etc. Every home owner in South Florida should know the process of how Foreclosures work.
What is foreclosure?
Foreclosure is a legal process, and it starts when someone receives a loan from a lender and is unable to pay loan within the agreed upon time frame, and eventually the lender attempts to recover the loan by selling the mortgaged property.
Here’s how foreclosure works in South Florida
The Foreclosure process varies state to state. There are two common ways of foreclosing on a property:
*** Judicial foreclosure
*** Power of sale foreclosure
Florida follows the judicial foreclosure doctrine.
Under Judicial Foreclosure:
- Lenders will file lawsuits against you when you are unable to pay.
- You’ll get a formal summons from the court.
- You can avoid foreclosure if you bring the payment within 30 days or receive extended time from the court.
- If you are unable to pay after this time period, the lender can request the judge to sell your property to recover the loan.
- Once the property is sold, the local chief executive officer issues an eviction notice and you must vacate the property.
How to Avoid Foreclosure in South Florida
If the selling price is not enough to recover the lender’s loan, the lender might get a “”deficiency judgment”. Lender can file a separate lawsuit against the borrower to recover the deficiency.
If the selling amount is equal or more than the borrowing amount then you are off
out of the hook because no deficiency exists. If there is any deficiency then the court can evaluate the actual selling price to market price and will adjust if selling price is less than market price of the property.
If you are undergoing a foreclosure process you should find local home buyers like We Buy Any House In South Florida to help you to avoid foreclosure.
Professional home buyers like us can help you by negotiating directly with the banks because we know how the process works. Sometimes we can eliminate the prospect of a foreclosure, even if your home is worth less than you owe.