Foreclosure Guidelines in Florida

Highlights:

Judicial/ Non-Judicial Foreclosure: Only Judicial Foreclosure

Right of Redemption/ Deficiency Judgment: Available/ Available

Timeline: 180 Days, Can vary depending on individual cases

Deed of Trust / Mortgage as Security Instruments: Mortgage

 

Judicial Foreclosure Process:   

Mortgages are foreclosed in equity in Florida. The borrower may file counter-claims against the lender and the foreclosure claim, which is tried as a separate trial.

The procedure for the Judicial Foreclosure is detailed along with all the terms and conditions in the court order that authorizes the foreclosure.

The lender is required to arrange for any advertisements that are required to be placed in newspapers, notices to be displayed on the property, notices to be sent to the borrower’s, etc.

After the foreclosure sale (through a public auction), the equitable rights of redemption (buyer claiming the property by paying up dues) ends. This can sometimes end at some other time as mentioned by the court, as well.

The court reviews if the proper price has been paid for the property once the sale is complete. It takes a few days after a sale to do this. During this period, either of the parties may choose to object to the manner in which the sale proceedings have been conducted (If there was any flaws in following the sale procedures, for example).

This period is generally around 10 days and if there are no objections from either side, the title transfers to the highest bidder and a certificate of sale is filed in the court.

If, for some reason the sale is not confirmed, the court can order another sale and the date/ time and other terms for the new sale are put up by the court.

In case if the value offered by the highest bidder is less than the total amount due, the lender (bank) can file a deficiency judgment in Florida, which makes the borrower personally responsible for the balance amount.