Terminology
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Pre-foreclosure – this is the period after about 90 days when the home owner has missed 3 payments. Once the lender puts a judgment against the homeowner, it goes to the courts and the lawyers take over. This is also called “Lis Pendens”.
Auction – The mortgage is not re-instated. If the late fees + attorney’s fees + all missed payments are not brought up to date, eventually the home is auctioned off.
Foreclosure - At the point when it is auctioned off, the home is now foreclosed.
Short Sale – The process of the bank accepting a purchase price lower than what is owed on the current mortgage balance. Many homeowners who purchased their homes with little or no money down in the past couple of years have no equity this market, so the thought of a short sale is a very acceptable solution since no equity is on the line and a foreclosure would be far worse.
Real Estate Owned (REO) - When the home is not sold at auction because no one bids on it, the bank takes possession and now owns the house. The bank will then sell this house by hiring Realtors and putting it back on the market.
Continuance – When the homeowner or attorney asks the courts to delay the foreclosure. This is common if there is an offer on the home; either a full offer or a short sale offer as the banks may delay the foreclosure to review the offer. An attorney can further delay a foreclosure at additional cost to the homeowner.
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ShortSales/Pre-Foreclosures
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Are you behind in your house payments? About to lose your home? Is your home worth less than you owe on your mortgage?
Many people are struggling to stay afloat, borrowing from Peter to pay Paul, are hoping for a miracle, or have simply given up. Do not fall into that trap! You are not alone... There are options that can still save your credit and your sanity...
You need a skilled agent to help council you through these complicated issues!!
I am a certified Shortsale/REO Specialist and I'm ready to help you get your sanity back!
Call Darla Greer today at 239-671-9979
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Florida Foreclosure Law Summary
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Judicial Foreclosure Available: Yes
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Non-Judicial Foreclosure Available: No
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Primary Security Instruments: Mortgage
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Timeline: Typically 180 days
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Right of Redemption: Yes
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Deficiency Judgments Allowed: Yes
In Florida, all mortgages are foreclosed in equity. In a mortgage foreclosure action, the court severs, for separate trial, all counterclaims against the foreclosing lender. The foreclosure claim shall, if tried, be tried to the court without a jury.
The court order of foreclosure will specify how the foreclosure must take place, and the foreclosure must take place on those terms. Whenever a legal advertisement, publication, or notice relating to a foreclosure proceeding is required to be placed in a newspaper, it is the responsibility of the lender or their representative to place such advertisement, publication, or notice.
Equitable Right of Redemption ends at the foreclosure sale (or at another time specified by the courts, but this rarely happens). There is a period of time after the sale that "the court reviews the sale to ensure a fair price has been paid." Basically, this period of time allows parties to object to the sale on the basis that proper procedures were not followed or collusion existed between the bidders, for example. This period is usually 10 days, after which the Certificate of Sale is filed and title passes, if the sale is confirmed. If the sale is not confirmed, another sale is ordered. (Reference F.S. Chapter 702)
The lender may sue to obtain a deficiency judgment in Florida.
Click on this link for additional information: Florida Law (2007 Florida Statutes) | | | |
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Why a lender might accept a shortsale
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While most lenders will not be thrilled at the prospect of a short sale they are acutely aware that a foreclosure is usually a far more time consuming and costly option. In a real estate market where housing values are going down it is in the best interests of the lender to liquidate their problem loans as quickly as possible.
With a short sale a property can be sold and the loan taken off their books fairly quickly. If they pursue a foreclosure they run the risk of the process taking a substantial amount of time during which the value of the property is depreciating. Also, buyers will tend to write low ball offers when they know that a bank or lending institution owns the property. The property will also be left vacant which can result in vandalism and deterioration. Some owners will even gut the house just before the foreclosure sale as a way to “get back” at the lender. This is illegal but nonetheless happens on occasion. So, you can see why a lender might want to go the short sale route and get the loan off of their books with minimal hassle.
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