Many of us know the word “foreclosure”, but do all of us know exactly what it means? A foreclosure is a legal process where a lender takes ownership of a property when the borrower fails to pay. Foreclosures can all start the same way, but there are many different endings for a foreclosure including pre-foreclosures, auctions, and Real Estate Owned (REO).
Types of Foreclosure
There are two types of foreclosures. The first is non-judicial and it occurs in deed of trust states. In a non-judicial foreclosure, the third party that has the power to take back the property when the mortgage is in default holds the title. These foreclosures can take 60 to 120 days because the lender does not need to file a lawsuit against the mortgage holder.
The second type of foreclosure is judicial. This type occurs in mortgage states, like Florida. The judicial foreclosure usually takes longer because the mortgage holder has to go to the court to rectify the issue when the mortgage goes into default.
Steps to Foreclosure Sale
1) The first is the pre-foreclosure period when a property owner starts missing payments before any legal action has taken place. During this time frame a property owner may consider an offer because it can help save their credit and they may avoid a full foreclosure.
2) The next step is a Notice of Default (NOD), which is the first legal step in a foreclosure process.
3) Next is the foreclosure sale. The time frame of the sale depends on if it is a judicial or non-judicial process.
4) Finally, there is the redemption period. Some states allow property owners to get their title back if they pay the full balance of the loan along with fees. Florida does not have a redemption period.
Typical Home Foreclosure Timeline
Days 1 – 20: Complaint/Lis Pendens is filed and recorded in county records. You may be served with foreclosure papers at about this time.
Days 20 – 30: Service/ Served – Official notice the foreclosure is processed. IMPORTANT: Do not ignore the complaint. It is critical that you take action before the court enters an automatic default. Time is of the essence; you only have 20 days to get moving and file a response.
Days 90 to 150: Judgment Hearing. The judge will grant the lender a foreclosure judgment and set a sale date, usually 30 days out if you do not hire an attorney and fight back.
Days 120 to 150: Foreclosure sale and eviction. The home or property will be sold to the highest bidder at public auction. A bankruptcy must be filed prior to the foreclosure sale, or the home or real estate will be lost forever!
10 Days after the sale: Once the title of transfer is official you will no longer own the property and can be lawfully evicted.
Is Refinancing an Option?Another option that many people are unaware of is that they may qualify for a new loan from another lender or even the same lender who is processing the foreclosure. You are allowed to borrow money against your home even during the foreclosure process long as you pay off the current lender with the proceeds of the new loan.
Tampa Foreclosure Defense You Can Count OnRemember, not all foreclosures situations are the same. When you contact a Tampa foreclosure lawyer at the Law Offices of Stephen K. Hachey, you will get astute and attentive advice on your specific situation. They can also help you discover some additional solutions that you may not be aware of. Stephen K. Hachey, an experienced Florida foreclosure attorney, can not only help you determine your options, but he can advise you on the best course of action based on your unique situation.
The Law Offices of Stephen K. Hachey proudly serves all of Central and West Florida beyond the Tampa Bay area. These markets include Tampa, Orlando, St Petersburg, Clearwater, Wesley Chapel, New Tampa, Tampa, South Tampa, Lutz, Zephyrhills, Land o Lakes, Sarasota, Lakeland, Ft Myers, Cape Coral, Bradenton, Bonita Springs, Naples and everywhere in between.
If you are faced with losing your home due to foreclosure, call 866-200-4646 today for a free consultation.
West Tampa Office: 3030 N Rocky Point Dr West Ste 150, Tampa, FL 33607