Foreclosure in South Florida
What are some of the reasons why you may be faced with a Foreclosure?
- Loss of job or reduced income
- Obtained a sub-prime loan
- Increased property taxes and insurance
- Adjustable rate mortgage (ARM) and Zero down loans
- Death of family member
- Unexpected medical, divorce or home repair bills
- Market shift/owe more than home is worth
- Re-finance and pulled out equity, all contribute to Foreclosure
What is a Foreclosure?
It is a legal process in which a lender takes the title or forces the sale of a property as a net result of the borrower’s failure to comply with the terms and conditions of the mortgage. A Foreclosure will take a tremendous toll on your personal well being along with a huge hit against your credit rating; affecting your ability for future home ownership for years ahead. A Short Sale also has a hit against your credit rating however, when selling your home as a Short Sale in South Florida you’ll be in a better position to qualify for a home loan than having gone through a foreclosure
How do you know that a Foreclosure is nearing?
The beginning of a Foreclosure will start with a letter warning you that you are in default. The letter will indicate that you have been late in your payments typically 60-90 days. You would need to contact your Lender to make suitable payment arrangements or the Foreclosure complaint filing could follow.
If you have been unable to make satisfactory arrangements with your Lender, a Lis Pendens filed in the courts would follow indicating a lawsuit has been filed against you for non payment
The Foreclosure complaint will then be delivered to all defendants as a “Summons”. This Summons will indicate that you have a certain number of days to respond to their complaint of you being in default.
After waiting the typical 20 days to respond, the Motion for Summary Judgment of foreclosure is filed in court to schedule a hearing with a Judge
The date of hearing for the motion for Summary Judgment of foreclosure is now scheduled after the Summons. At this hearing which typically lasts less than 20 minutes probably closer to 10-15 minutes is where the Judge will set the final Judgment amount and schedule the Foreclosure sale date; the date of which your home would be sold at public auction. This Summary Judgement has been typically handled in this manner up until just recently, December of 2011, when the 4th District Court of Appeal’s decision that now provides the homeowner with a better chance of actually having a true hearing instead of the 10-15 minute hearing. This will allow the homeowner an opportunity when there are facts present that are in the homeowners favor.
Have you had a conversation with your Lender about your particular situation? Just don’t ignore your situation thinking it will go away.
Disclosure – With a Short Sale, there are no guarantees offered and we cannot provide legal advice or tax advice Be sure to seek legal and tax advice.