The default process is triggered when a homeowner misses 3 consecutive months of payments. The lender will send out a Notice of Default demanding full payment of all past due amounts owed and the lender may also “Call the Mortgage Note Due” which is the accelerated payment clause in the mortgage note. This requires full payment of the entire mortgage balance. If no payment is made, the filing of a foreclosure suit will follow.Within 30 days, if no resolution is made, the lender’s attorney will file a Lis Pendens and a Mortgage Foreclosure Complaint. This is a court action meaning there is pending litigation against the home owner for mortgage default. A process server will personally present this complaint to you to insure that the homeowner is notified of the legal suit.Within 3 to 4 months if there is no resolution with the lender via loan modification, short sale, deed in lieu or other lender approved resolution, the court will order a Summary Judgment Hearing to pronounce Final Judgment on the Foreclosure and order a Sale Date.
The Sale Date will be set within 30 to 60 days from the Summary Judgment Hearing date. At that time the property will be sold to the highest bidder at the court auction.
In Florida there is a 10 day right of redemption, meaning that the owner of the property may come forward during this time, make full payment of all monies owed and retain the property. After the 10 day period, the court issues the new certificate of title to the highest bidder at the foreclosure auction.
The time frames stated are based on general time frames, some foreclosure suits are completed within 90 days and others have stretched out over a number of years.
Have more questions about the foreclosure process? Call us today at (727) 644-3370