Florida is one of the judicial foreclosure states. This means lenders or banks looking to foreclose a residential property should get approval from the court or judge.
Before Florida’s foreclosure crisis peaked around 12 years ago, state and federal laws regulating foreclosure procedures and mortgage services used to be limited and favored lenders.
However, state and federal laws today regulate foreclosure processes and mortgage servicing. And most Florida laws offer protections to homeowners or borrowers.
Generally, services offer borrowers account for all foreclosure steps and loss mitigation opportunities and, simultaneously, strictly ask them to comply with every foreclosure law.
Plus, many individuals who take a mortgage to purchase a house in the state sign a promissory note. This document gives homeowners contractual rights, apart from state and federal legal protections.
Florida Foreclosure Laws
Lenders throughout the United States should comply with federal laws and strict regulations when pursuing a foreclosure or preparing mortgage agreements.
As a resident of Florida, you will need to sign mortgage agreements and promissory notes when buying a residential property.
These are binding documents that grant property owners contractual rights in addition to federal and state provisions. As a result, you will have the right to do the following:
- Receive a breach letter
- File for bankruptcy
- Pay off your mortgage
- Answer summons and complaint
How Foreclosure Process Works
There are different kinds of financial constraints, which might make homeowners foreclose. These may include things such as job losses and medical issues. But it is worth saying that foreclosure is not a singular process.
While many individuals don’t know it yet, different foreclosure actions are normally used in various jurisdictions. This might be confusing, especially if you are an out-of-state transplant in Florida.
So the best thing you need to do is to go to court. There are several reasons it is advisable to consider going to the courtroom. Even if the servicer wins eventually, the best Florida foreclosure defense attorney will take legal actions to handle the case.
The servicer might have violated protective foreclosure laws, enabling your lawyer to lay a serious hurdle in the servicer’s path to foreclose your residential property.
Stopping Foreclosure Immediately
If you are dealing with foreclosure and are not sure of the available options, it would be best to know that the sooner you come up with the best strategies, the more successful you are likely to have a stronger defense.
For more homeowners, foreclosure defense serves as a chance to buy time. Mostly, this time is what your family requires to get back on their feet as well as be in the house.
Time will also afford you, as a homeowner, a chance to do a few things. Some of these things may include executing the following:
- Mortgage modifications
- A short sale
- Strategic default
If you fall behind on your mortgage payment, your residential property will be in great danger of getting foreclosed. Whatever your financial troubles are, you will need to quickly preserve your legal rights and put yourself in a better position to maintain the property.