Facts About the Foreclosure Processes (FL)

When you first dreamed of living in Florida, your favorite fantasy was that you would lie on the beach every weekend and work on your tan. Ahh, the feel of the sun toasting your bones still frozen from years of cold, windy icy winters of living up North....

Now you are here and your savings are depleted and you wonder if you can survive working two or three jobs just to make ends meet for another year, another month, and another day. You bought your dream home and got one of those great teaser rate loans that the bank or mortgage broker told you would be great. Just refinance after the prepayment penalty is over. You're tired, the car broke down and now you can't pay the mortgage because if you do, you can't pay the electricity and the water bill let alone the car payment, insurance and oh, yeah, food. It appears that your life is spiraling out of control. The big F is setting in. FEAR. Now you can't sleep. Going to the beach just makes you angry because you fell for the good life in Florida dream.

The mortgage company is now calling. You shrink into your skin every time the phone rings. Your stomach hurts and you know that you probably have an ulcer burning bright in the pit of your soul. All you think about is losing your home. Disappointing your family. Giving in to the failure. You visualize the sheriff's deputy padlocking the door and saying "You've been foreclosed! Get out!"

You've receive something called a Lis Pendens in the mail. Whatever that is? It looks official and says something about responding within a certain number of days. Now you are getting phone calls from so-called saviors who just want to help you. They say they will buy your home. They will save the day for you. Just sign on the dotted line and walk away without your hard earned equity. Mortgage brokers are calling with "bail-out" plans. You get postcards, letters with wrapped LifeSavors candies or peppermints enclosed (to make your feel better, right?) Your worst nightmare is your reality. The wolves are snarling, drooling at your door, ready to spring forth and carry you to slaughter. And, the sad fact is that if you let them, they will eat you alive!

Have I painted the picture? OK, now let's get REAL! In the State of Florida, foreclosure is a judicial process. This means that it takes a prescribed amount of time for any foreclosure to occur and you do have some time to save yourself! Don't let the big F named FEAR eat you up and spit you out before you have the information you need to make the right decision for your particular case.

You have to STOP and get factual information and talk to someone who will lay it all out for you. Only you can make the decision about how you want to remedy the situation at hand.

The foreclosure process

In the state of Florida, foreclosures are accomplished through the court system. It take about five months for the entire process to be completed.

Lis Pendens

A foreclosure begins when a lender or mortgage holder files a court actions and public notice of a pending lawsuit against the borrower. This pending lawsuit is known as Lis Pendens.

You may receive an ordinary letter

The borrower will notify the borrower or other known parties affected by the lawsuit such as other lien holders via mail or publication. (This may or may not be a certified or registered letter.)

Do not ignore the Lis Penders

The borrower had a specific number of days to respond to the lawsuit. This would be the perfect time to get a consultation with an attorney to answer questions you may have about this process.

If you default, shame on you

You must answer the Lis Pendens with the Clerk of the Court. Do this within the specific answer period. Do not ignore this notice! If you do not answer the Lis Pendens, the Clerk of the Court can find the borrower in default and the lender can ask for a rapid final ruling from the court. If the court rules against the borrower, the ruling will include the total amount owed to the lender and court costs plus a foreclosure sale date.

Notice Requirements

In Florida, a lender is not under any obligation to notify the borrower of its intent to proceed with the foreclosure process. However, individuals or deeds of trust might have to notify you in advance. (Note: there may be different rule variations in certain counties. Always check it out!)

Good News about Satisfactions (The right of redemption)

In Florida, a borrower can stop foreclosures right up to the date of the sale by paying the total amount owed to the lender!

The Sale/Auction

In Florida, approximately 20 to 35 days after the court ruling depending on the court system, the clerk of the court issues a public notice of sale. You will see this published in the local newspaper of record or posted online or on bulletin boards in the courthouse. The notice includes the location, date and time of sales plus any instructions a bidder needs to know to participate in the foreclosure sale. The notice typically is published once a week for two weeks, with a second notice published at least five days prior to the sale.

This foreclosure sale typically occurs at the county courthouse where the foreclosed property is located. The clerk of the court receives a deposit and a winning bidder must pay the balance within a certain number of days. Again, individual clerks of courts have different rules based on Florida law and the judicial procedures of their particular court system.

Once the property is sold and a certificate of sale is issued, the borrower no longer has any right of redemption.

Now that you have some facts, let's look at some ways to get out of the jam.

1) Work with your bank or mortgage company. Talk to the mortgage company first. They have the ways and means to help you if you talk to them early in the game. If you think you will have trouble in a month or two, you need to tell them and see what they can do to help you. Buy yourself some time using the communications method.

2) Sell the property using a reputable Realtor. A Realtor is governed by a strict code of ethics to serve the public with honesty. Try to sell your home, so you won't lose your equity. (This is typically where predators go for the jugular.) Let's say you are in trouble with a $100,000 mortgage, but your home is actually worth $150,000. A predator comes in and says I will buy your home for what you owe plus I will pay all the closing costs. You say that sounds good. You can walk away free and clear. Yes, and the predator just made a quick $40,000 on your pain and misery. Don't let this happen to you. Sell the home at market value, pay your Realtor his or her commission and you walk away with money in your pocket and your credit rating in tact.

3) Foreclosure Bail Outs. There are reputable mortgage brokers and many big name banks have programs specifically for foreclosure or pre-foreclosure bailouts. Your best bet is not to get to the Lis Pendens or foreclosure stage, but if you do. Talk to a mortgage broker and bank and ask about all the fees, interest rates, etc. Ask the mortgage brokers how he or she actually gets paid. Now watch them scrim in their chairs. Go with a mortgage broker who tells you how they get paid and how much they will make on your mortgage. After you get the facts, you can decide if it is worth it to you to get bailed out using this method. This may be the only way you can go. You have to get the facts first. Think it over and make a decision that is right for you. Don't let anyone pressure you into making an immediate decision. Remember, you are in control now because you have knowledge.

4) Change your thinking. Remember my scary scenario? You can eliminate much of your fear of the unknown by gaining facts and visualizing a positive outcome. Change your thoughts to one of solution thinking and you will get positive outcomes.

5) Don't wreck your credit! Foreclosure is a big black mark on your credit rating. It will haunt you for years to come. Your job is to stay calm in the sea of Fear and Uncertainty. Use your knowledge to set the right course for you.

As a licensed mortgage broker and Realtor, it is my ethical duty to give you information and facts, so you can be an informed consumer. My job is to deal honestly and fairly with everyone. So know that the information that is presented here is research from the state of Florida derived from http://www.myflorida.com/, the official Web site of the State of Florida and other sources.I am not an attorney, so if you want legal advice seek out a competent real estate attorney. For more information, visit http://www.tamipatzer.com/, click on the World Properties International, Inc. Logo on my home page to find out more about mortgages and my services. Call me at (800) 756-3091 or personally on my cell at (941) 875-6800. You may also call my office during regular business hours at (941) 475-7011.