I want to say right off the bat that I am not a Florida foreclosure attorney, and that this article is meant to be used for informational purposes only.  Please be sure to consult a legal professional who understands the finer points of Florida foreclosure law before making any final decisions or determinations. Now, on with my post...

Foreclosure is something no one wants to face, but it's all too common a situation for many Florida families today.  As such, I wanted to provide a little bit of information about Florida foreclosures, how they're structured, and where you might want to look in the unfortunate case you and your family may be facing one.

The Initial Foreclosure Process

Florida foreclosures begin when lenders record a notice with the court, known as a Lis Pendens - stating that they plan to begin the process against a borrower.  At this point, your lender will contact you - usually via mail - to let you know that they have initiated the foreclosure process.

If you, as the borrower, do not respond to this notification/court action, by the specified deadline, the county clerk may find you in default.  Should this happen, your lender may then ask the court to make a final ruling in the case.  If the court rules against you, the ruling will include the total amount owed to the lender and will let you know exactly when the foreclosure will take place.

It should be mentioned here that the last thing your lender wants is to take on your property.  What they want is your payment.  In most cases - especially in today's housing and economic environment - your lender will contact you by phone prior to initiating the foreclosure process to inquire as to why you haven't made your payment(s). This is assuming that you haven't already contacted them - which you should... immediately!

I say this because there is no law that requires your lender to contact you before the begin the foreclosure process on your Florida home.

Remember, in all things relationship/financial:

Open communication = GOOD... Ostrich head in the sand approach... BAD.

Notification of Sale and Foreclosure Auction

There is usually some lag time between the time your are first notified about the pending foreclosure and the actual court ruling.  Many factors can extend this time period, and I encourage you to contact a Florida foreclosure attorney to determine exactly what steps you should take once you are initially notified.

Should the court rule that your foreclosure move forward, the actual foreclosure sale date will be set for sometime between 20 to 35 days after the ruling date. You should be notified by the clerk of the court as to the time, date, and location of the sale, and this notice will also be published once per week for a period of about two weeks - followed by a second notice 5 days before the actual sale.

Typically, the sale (auction) of your Florida home via foreclosure will be overseen by the clerk of the court and will take place sometime around 11: 00 on the sale date.  If a winning bidder is established,  they must pay a 5-percent deposit and agree to pay off the remaining balance by the end of the day.  If that bidder fails to follow through, a new sale is scheduled a minimum of 20 days later.

The Florida foreclosure process may be swift, or it may linger on for a while - depending on the number of foreclosures in the pipeline.  Here in central Florida, multiple auctions are not uncommon.  Once a bidder successfully pays for the property, they receive a certificate of sale from the clerk of the court, and the deal is done.

Note: As recently as February 26, 2009 - the Huffington Post announced that a chief judge for the ninth circuit in Orange County, Florida -- an epicenter of the foreclosure crisis -- ruled Wednesday that mortgage providers must negotiate with borrowers before foreclosing on their homes.  While this may not mean that you will necessarily be able to avert foreclosure, it does offer up some hope that the light at the end of the tunnel is still at least flickering.

Now, go call your Lender!

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