How Foreclosures Work in Florida
If you are behind on your mortgage payments or facing foreclosure on your home in Pasco County or anywhere else in Florida, you need to understand how the process works to protect your credit and end up with the best possible outcome.
What Exactly Is a Foreclosure?
The term foreclosure refers to the legal process that a lender uses to secure a loan by taking property after the borrower has stopped making the agreed-upon payments. Facing a foreclosure can be incredibly stressful, but it does not have to be the end of the world.
Arming yourself with the knowledge of how a foreclosure works can go a long way in helping you avoid some of the worst possible outcomes. Here is the basic process outlined:
- A homeowner falls behind on their mortgage payments. After about 3 – 6 months of failing to make a payment, the lender begins the foreclosure process.
- The lender may send several (or none) notices about the bill being overdue. This is done because the last thing the bank wants to do is have to auction off an abandoned property to secure the loan.
- The lender may foreclose by using a judicial sale or power of sale. This is typically determined by the local laws. To know more about Pasco County’s specific foreclosure process, call our office at 813-442-8214 or via our contact page.
- Is filed by the lender through the local court system.
- The court will send you a letter demanding that you pay the owed amount.
- If the claim is valid, then you will be given 30 days to bring the amount owed to the court. In some cases, this 30-day limit can be extended.
- If no payment is made in the allotted time, the court will allow the lender to sell the property. This type of sale is usually completed through an auction.
- Upon sale, an eviction notice will be served by the Sherriff and you will be forced to vacate the property.
Power of Sale (Non-Judicial) Foreclosure
- The lender will serve the borrower papers to demand payment. The court will not be required. The process the lender uses, however, may be subject to judicial review.
- Once the allotted time has elapsed without the requested payment being made, control of your property is transferred to a trustee through a deed of trust.
- This trustee then has the legal authority to sell the home via auction. If this happens, notice must be given to the homeowner.
- Anyone with an interest in the property will be notified of this sale. This includes any other banks or perhaps contractors who have a lien against the property.
What Happens After a Foreclosure?
The sale of a property by a trustee via auction may earn enough to pay off the loan. If it doesn’t, however, a “deficiency judgment” may also be ruled against the homeowner who was foreclosed upon. The amount a lender can seek through a deficiency judgment is limited in different states. Some allow for fair value judgments and others allow for the full amount of the loan.
In general, the best thing you can do as a homeowner in Pasco County is to avoid a foreclosure. That’s why Easy Sale HQ specializes in helping homeowners facing foreclosure in Pasco County quickly sell their property. This way you can avoid having your credit damaged for years to come.
We Buy Unwanted Property in Pasco County
Easy Sale HQ specializes in helping homeowners facing situations like foreclosure in Pasco County and throughout the state of Florida. You can still protect your credit with our help. It doesn’t matter if you are behind on your mortgage or already facing foreclosure. If you need to sell your Pasco County house or property quickly, we can help. In some cases, we may even be able to help you avoid foreclosure and walk away from the property with cash in hand. Call our office today or simply click the link to get started.