Florida foreclosure and eviction moratoriums set in place due to COVID-19 are scheduled to end on August 1st. With as much as 14.5% of the state population unemployed or furloughed, Florida can likely expect a wave of foreclosures soon after the foreclosure ban is lifted. This will be a stressful and uncertain time for many homeowners who find themselves struggling financially due to the pandemic. The following information about foreclosure processes in the state of Florida will help homeowners better understand their rights and the importance of seeking legal defense when contesting foreclosure.
How do foreclosures work?
Foreclosure is defined as the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property. Default is typically triggered when a borrower misses several mortgage payments. After the first missed payment, the lender sends a notice indicating they have not received that month’s payment. If the borrower misses two payments, the lender will then typically send a demand letter. Demand letters are more serious than missed payment notices, but at this stage, the lender may still be willing to make arrangements for the borrower to catch up on missed payments.
If a borrower has missed payments for 90 days, the lender will move to the next step which is sending a notice of default. At this stage, the loan is handed over to the lender’s foreclosure department, and the borrower typically has another 90 days to settle the payments and reinstate the loan. This is referred to as the reinstatement period. If the payments and loans are not settled by the end of the reinstatement period, the lender will begin the official foreclosure process.
In the state of Florida, lenders must go through the courts to be granted permission to proceed with a foreclosure. Lenders must prove in court that the borrower is delinquent. This process of requiring court approval is called judicial foreclosure. Judicial foreclosure is typically a slower process than non-judicial foreclosure and can work in favor of the borrower as it provides more time to settle payments.
Foreclosure defense and the importance of professional legal counsel
Potentially losing a home is a serious and life-altering situation, which makes exploring foreclosure defense a common and effective avenue for homeowners to take before foreclosure becomes final. If you are seeking to contest your foreclosure, it is in your best interest to retain the services of an experienced foreclosure attorney. Real estate and foreclosure law is highly complicated and puts a lot at stake for homeowners. Due to these complexities, those going through foreclosure proceedings require effective representation in court which makes consulting an experienced attorney imperative.
With as much as 14.5% of the state population unemployed or furloughed, Florida can likely expect a wave of foreclosures soon after the foreclosure ban is lifted.
At South Florida Law, experienced real estate lawyers advocate on your behalf during foreclosure cases and protect your rights as a homeowner. With their thorough understanding of Florida real estate law, the South Florida Law team will expertly identify where there has been an infringement of rights, such as proving that the lender did not follow proper procedure or that the terms of agreement between lender and borrower are unconscionable. A successful foreclosure defense may prohibit or delay the foreclosure process or result in a lending institution being willing to negotiate a loan modification that allows borrowers to keep their home.
Call South Florida Law
Are you a homeowner who believes you may be at risk for foreclosure? Exercise your right to legal defense and ensure you are equipped with the best team to represent you. Take proactive measures and consult an experienced real estate lawyer who can help keep you in your home. Reach out to South Florida Law at (945) 900-8885 or via our contact form.