How the Foreclosure Process Works in Florida

COVID-19has presented Florida families with all kinds of financial challenges. Layoffs, reduced hours, pay cuts, elimination of bonuses and overtime, and other changes have caused a drastic increase in the number of Florida homeowners who are facing foreclosure. While the FHA has put a temporary halt on foreclosures, this rule will expire on December 31. This rule also does not apply to all properties and home loans in the United States. It is important for Florida homeowners to understand the foreclosure process, so they know what will happen after the foreclosure ban is lifted in 2021. 

The process begins after a borrower misses mortgage payments. If one payment is a few days late, this is unlikely to trigger the entire process. But even a couple of missed payments add up quickly. Banks usually do not let an account go too far before they start the foreclosure process. Florida law requires an account to be delinquent for 120 days before a lender can file foreclosure proceedings. If the missed payments continue this long, most lenders are ready to file.

The lender will file a few different documents with the court in order to initiate the foreclosure process. This includes a complaint (setting forth the facts that support the lawsuit), a summons to court, and a Notice of Default. All of these documents must be served on the homeowner before the case can proceed. The homeowner has 20 days from the date of service to file a formal response to the complaint with the court. This is the homeowner’s opportunity to deny allegations or correct facts that are not accurate. If the homeowner disputes the facts, the case can go to trial. If the homeowner does not, the lender can be granted summary judgment. If the lender wins either on summary judgment or at trial, the property will be sold at auction.

The foreclosure process can be overwhelming – especially for homeowners who have not dealt with it before. Many Florida families will be faced with this challenging situation for the first time due to the financial pressures created by the coronavirus pandemic.

It is important to consult with an experienced Casselberry and Oviedo foreclosure defense attorney as soon as possible in order to explore all options available to you to keep your family in your home. Contact Quattrochi & Torres online or call 407.452.4918.