The Florida foreclosure process is judicial. This means every foreclosure action is prepared and handled using the court system. There are other states where foreclosure may follow a non-judicial process, but not Florida.
It is important to know that few statutes exist that regulate Florida foreclosures. Florida foreclosure law and foreclosure defense itself is still emerging and developing. To date, most of the law regarding the mortgage foreclosure process is scattered throughout cases that were decided before Florida judges.
Highlights of the Florida foreclosure process
Some main points found within the Florida Statutes and judicial decisions are:
- Every foreclosure claim must be tried to a judge. Homeowners aren’t entitled to a jury trial. Yet, for every counter-claim filed by the homeowner to fight the mortgage foreclosure, a separate trial will be initiated and may be tried to a jury. Trials involving counterclaims are separate from the main foreclosure lawsuit.
- It is impossible to get an injunction to stop a court ordered foreclosure sale. If an error is found within the foreclosure procedure, a foreclosure sale can be delayed. However, the sale will not be delayed because the sale price is too low.
- The foreclosure must abide by all of the terms specified by the court order commanding the foreclosure.
The Florida foreclosure process begins when the mortgage lender files a lawsuit. This is done in the Circuit Court in the same county that is the location of the property being foreclosed on. The homeowner or borrower is presented with the notice of the lawsuit. They are allowed the opportunity to defend their rights in court.
The lender’s goal is to prove that the homeowner has not met their contractual obligations of the mortgage by failing to make payments. The lender will try to show default on the side of the homeowner – and since that property is the security for the debt, they will declare that Florida equity law makes the foreclosure necessary.
How the Mortgage Foreclosure Process Has Changed
Since the Florida foreclosure process is a legal action, there are strict regulations the mortgage company must follow through the entire procedure.
In days gone by, borrowing money to buy a house was much simpler. You went to a bank, the bank loaned you the money, and you promised to repay the bank with interest over a certain amount of time.
Nowadays, it is a rare case indeed for the original bank that gave you the loan to be the company that you now make your payments to. No, your payments most likely are going into a huge pool of either government sponsored or large private financial institutions.
How to Fight the Florida Foreclosure Process
The ways that the mortgage brokers resell, transfer, pool and repackage these mortgages between lenders and brokers is often careless and invalid in the eyes of the law.
Just as the mortgage brokers are trying to prove their case, as the borrower, you also have a case to prove. Yet so many people facing foreclosure do not know they can successfully fight back.
How many people have simply “given in” to the lender, when in fact they could have proven in court that the lender does not “own” the mortgage any longer?
How many homeowners have handed over their note to the banks, when a properly executed foreclosure defense would have bought them enough time to get their life back in order?
If you are facing foreclosure, take action now and get the help you need to stop the Florida foreclosure process.