Understanding the Basics of Judicial Foreclosure
In Florida, unlike more than half of the states in the U.S., it is necessary for a bank or other mortgage lender to carry out a full judicial foreclosure on a property with a mortgage in default. This means that before you can lose your home to foreclosure, state law requires the bank to sue you in court for an order known as a foreclosure judgment. This is one example of how Florida's real estate laws are in many ways favorable to the homeowner. In many states across the country, a homeowner does not actually own the home if there is a mortgage on the property – instead, it is more like a rent-to-own program, due to the fact that the mortgage lender holds title and will only transfer ownership once the final mortgage payment is received. The lender's right to foreclose in Florida is based on the fact that it holds a lien on the property and that the home is pledged as collateral for the loan.
At any time between the date of the first missed payment and the date when the house is sold to a new buyer, the homeowner has a right of redemption; therefore, if you can find a way to raise the funds necessary to pay off the missed payments and any late fees that may have been assessed, you can “cure the mortgage” and avoid foreclosure. Even if this cannot be done, there is still a way that you might be able to prevent foreclosure. The transfer of title will not occur until ten days have passed since the date of sale, and if during this period it can be proven that the bank made errors in executing the court order to foreclosure, you may be able to reverse the action.
Let a Gainesville Foreclosure Defense Lawyer Help You
At The Law Offices of Justin McMurray, P.A., we have more than a decade of experience and a solid understanding of the areas of real estate law which apply to foreclosure, deed in lieu and short sales. Don't wait another moment before contacting us for a free consultation to discuss your case and learn about strategies for helping you avoid the serious consequences of a foreclosure.