People who are planning to buy homes under Florida foreclosures should be aware of the legal aspects the procedure
. This way, they will be able to prepare for the transaction and avoid legal risks associated with buying and selling foreclosed properties.
Primary Method
The primary way of foreclosure in the state is the so-called judicial method, wherein a lender is required to file a lawsuit against a defaulting borrower to initiate the foreclosure process. Usually, it takes around six months for the property to be sold at an auction from the time the homeowner receives the first notice of default.
Homeowners who are facing foreclosures can use this period to find another way to avoid foreclosure; either by seeking refinancing or opting for a short sale or making the mortgage loan current. Borrowers or homeowners should remember that selling the property before it gets foreclosed or making a loan current will be better options than getting the home foreclosed.
Options for Homeowners
Although homeowners who are under Florida foreclosures face the possibility of losing their homes within six months, there are instances when this period can be extended. This could happen if the homeowner contested the foreclosure based on legal reasons or if the homeowner sought a delay or filed for bankruptcy.
Under state laws, homeowners also have rights to take back a foreclosed property if they can pay the full amount of the loan plus the costs incurred in the foreclosure process. However, a time limit is often set for a homeowner who wishes to undertake property redemption. Borrowers should also be aware that deficiency judgments are honored in the state, which means that a lender can have the right to ask the homeowner to pay the difference if the home was sold for a price that is less than the amount of loan owed by the homeowner to the lender.
Most of the states in the U.S. follow a uniform rule when it comes to foreclosure. However, there are certain provisions that vary from one state to another. For investors and homebuyers planning to purchase residential properties under Florida foreclosures, learning the laws that govern these properties is the first step they should take.