Florida Foreclosure Laws
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Florida is called a lien theory state in which the property stays as assurance for the loan on the property. The lien on the property is placed through a document called a mortgage.
The final verdict on a foreclosure is issued through a court, because lenders in Florida have to go through a judicial foreclosure process through a court. The sale of the property is through a sale that has been notified publically. A Circuit Court is one, which has jurisdiction over foreclosures. A complaint, alongside a lis penden (a recorded document used to provide public notice about the foreclosure on the property) needs to be filed in the Circuit Court.
The documents are referred to as the mortgage or the note, and a security agreement in commercial transactions. On occasions the security agreement is merged with the mortgage document. In order to validate the loan and its repayment terms, which are incorporated in the note, a mortgage needs to be filed.
It can take around 180 to 200 days for a foreclosure that has not been contested to come into effect; this does depend on the schedule of the court. The process can be stalled if the action is contested in the court by the borrower, if delays are sought, if an adjournment of the hearing is sought or if the borrower files for bankruptcy.
A statutory right for redemption exists in Florida. An owner can reclaim the property upon payment of the unpaid loan and costs. There is, however, a time limit for the redemption to take place.
If a property is sold for less than the amount on the loan at the public sale the lender can obtain a deficiency judgment. This results in the borrower owing to the lender the difference of the selling price of the property and the loan’s original amount.
Laws that are found in F.S. 702.01 et. seq. govern foreclosures in Florida State.
