Facing a foreclosure process is not good for anyone. Once you get behind on your payments, your mortgage company will become your adversary. It won’t look for ways to help you keep your home. Many people who fall into default with their mortgage loans often experience some sort of hardship which set them back from being able to pay. Here we offer 8 tips about the foreclosure process in Florida.
1- What is foreclosure?
Foreclosure is when the bank files a lawsuit against you for not paying your mortgage payment on time. They’ve given you notice that you haven’t paid, the payment hasn’t been made, so now they’re suing you to collect the money and take the collateral, which is your home.
2- Who pays the foreclosure fees in Florida?
The foreclosure fees are actually allocated to the borrower in Florida. These are based on the contracts because in the contracts that you sign, which are usually the note in the mortgage, it says if there’s any foreclosure, then any costs, attorney fees that are associated with that foreclosure, are bared by the borrower.
3- Will the foreclosure process affect my credit score?
It most definitely will affect your credit score because as the foreclosure process is going on, it means that you’re not making any payments on the mortgage, so every month the bank will report a late payment while the process is going on. However, many of these things can then later be resolved either by getting a modification with a bank or filing a chapter 7 or chapter 13 bankruptcy.
4- What is a deed in lieu of foreclosure?
This is a settlement where you can offer the bank to deed over your property in lieu of the foreclosure, meaning that instead of them suing you and collecting money from you for the money past due and the rest of the amounts of the loan. You can make an agreement that you will deed over the property to them and just give it to them. You’ll move out and you call it even and they won’t sue you for the remaining balance.
5- What happens at the actual foreclosure sale in Florida?
The sales are actually done online now, so the sale is posted online with the amount. People go onto the auction site is what it’s called and they place bids on the property. Once the highest bid is reached and the time allotted has expired, then whoever had the highest bid is going to be the purchaser of that property.
6- What do I do after I am served with a summons and foreclosure complaint?
I would recommend seeking an attorney because a document must be filed or a response must be filed with the court as soon as possible in order to avoid a default being entered against you. If a default is entered, you’re prohibited from defending that action so it’s very important to act timely when you receive a summons.
I would recommend seeking an attorney because a document must be filed or a response must be filed with the court as soon as possible in order to avoid a default being entered against you. If a default is entered, you’re prohibited from defending that action so it’s very important to act timely when you receive a summons.
7- Do I have to move out of my home during the foreclosure process in Florida?
No, I think that’s one of the advantages we attorneys and our clients have in the foreclosure process. Once the foreclosure is filed, we may litigate against the bank, fight the foreclosure, try to get you a modification, try to settle a debt. All the while, you’re living in your house without having to make a payment to the bank.
8- Can the property be sold or re-financed if I am in the process of foreclosure?
Yes, while the process of foreclosure is going on you may sell your property. You may also refinance your property. You may also do a modification of mortgage in order to save your property. All those things may be done, at any time, until your property is actually sold in a foreclosure sale.