What Happens When a House Goes into Foreclosure in Florida?
- A foreclosure in Florida starts when the lender files for court action against the borrower. The lender records notice for a pending lawsuit. The lender notifies the borrower in person, by mail, or by publication. After the court action is filed, the lender has a specific amount of time, that varies depending on the foreclosure case, to respond. A decision is made by the court to decide if the borrower's house is to be foreclosed. The final ruling explains the total amount owed to the lender and a date is set for the housing foreclosure.
- In the state of Florida, the lender is not required to notify the borrower before processing a foreclosure in court. Individual deeds or mortgages may require a notification. Once the borrower becomes knowledgeable about the foreclosure case, they have the opportunity to stop it. A foreclosure can be prevented if the borrower pays the total amount owed to the lender before the date of sale.
- After the foreclosure is filed in court, the sale of the home takes place 20 to 35 days after. A notice is put up on the house one to two weeks before and another notice five days before the sale. The house is put up for auction and the winning bidder must pay a 5 percent deposit and any outstanding loans to the lender. If the winning bidder does not pay the funds, the house is put up for auction again 20 days later. The winning bidder receives a certificate of the sale proving they are the new owners.