Florida Foreclosure Laws

Florida foreclosure laws are the legal procedures by which a lender repossess collateral for a loan which is in default. These foreclosure laws in Florida are normally applied when one fails to meet repayment for a mortgage. The lender therefore obtains legal right to sell off the property due to non payment by the owner.

Florida is known as a lien theory state where the property acts as security for the underlying loan and title is held in the name of the borrower. The document that secures title to the property and stipulated the terms of payment is called a mortgage or note. When dealing with a commercial property, the document is call a security agreement.

Non-Judicial Florida Foreclosure

This state does not allow for a non judicial foreclosure. The mortgage does not contain the power of sale clause that would allow for a non judicial foreclosure.

Judicial Florida Foreclosure

The lender is required to undertake judicial foreclosure proceedings by obtaining final judgment for foreclosure through the circuit court, which is the court that has jurisdiction over a foreclosure. The lender files a complaint along with a lis pendens. This is a public notice document that stating the property has a pending suit on it.

Florida Foreclosure Process Period

It takes approximately 180-200 days to effect a judicial foreclosure that is not contested depending on the time taken to process court documents. The process can be delayed if the borrower contests the sale in court and seeks to delay or postpone hearings or files for bankruptcy.

Notice of Sale

A notice of sale is issued by the court clerk and contains details on the location, time and date of the intended sale. This notice must be published in a local newspaper at least once a week for two weeks with the second publishing appearing at least five days to the intended auction. The date of the intended auction is usually 20-35 days after the court hearing.

The court clerk is in charge of the sale which occurs at 11 a.m. On auction, the highest bidder is required to pay a 5% deposit and clear the balance by end of day. The winning bidder is issued a certificate of sale by the court clerk. Property ownership is then transferred to the winning bidder within 10 days.

Redemption

The state of Florida provides for a statutory right of redemption to the borrower, allowing him to redeem the property by making payments of all outstanding arrears and any other charges incurred in the foreclosure. The right to redemption ceases once the certificate of sale is issued to the highest bidder.

Deficiency judgment

The state of Florida does allow for the court to issue a deficiency judgment when property is sold at a public auction for less that the loan amount secured by the mortgage. The borrower therefore still owes the lender money if the auction does not cover the outstanding loan amount.

Foreclosure laws may change from time to time in any state. It is therefore important to seek legal counsel to obtain up to date information on foreclosure laws in Florida.