Altamonte Springs, Florida Foreclosure Process Attorneys
The foreclosure process involves a number of steps that banks must adhere to before they can foreclose on a home or evict a borrower from their house. In general, the following steps are involved in a foreclosure:
- In Florida, the foreclosure process begins when, after a borrower defaults on his or her mortgage for a period of two or three months, a lender issues a default notice informing the borrower to bring their payments current. In general, borrowers have 15 days to bring their mortgage current.
- If, after 15 days, a borrower does not bring their mortgage current, a lender may begin the foreclosure process. Since Florida is a judicial state, foreclosures must be processed through the court system.
- The lender files a foreclosure notice (Lis Pendens) to indicate their intention to sue a homeowner if their mortgage is not brought current. The court will then notify the borrower of the pending lawsuit.
- Once you are served with papers from your bank, you have 20 days to file a response. Your failure to respond will result in your being considered "in default." Working with an attorney to represent you can ensure your rights are protected and asserted.
- After a homeowner files a response, the bank must attend mediation with the homeowner. During mediation, your attorney can use the discovery process to locate documents and take depositions of bank personnel during interrogatory to support and leverage your case. As your lawyers, our office can file motions or negotiate with banks to allow you to stay longer in your home.
- The lender may file for a summary judgment in order to expedite foreclosure on your home. Should this happen, it's important to contact an attorney who has experience in dealing with summary judgment affidavits. Here, an attorney can file an "issue of fact" . If the bank does not respond, you should be able to stay longer in your home. If the bank receives a judgment in its favor, your property can then be put up for auction. The court will set a sale date between 30 to 120 days.
- Since the bank is suing the homeowner for money, they can auction off the property in order to recover what is owed on the mortgage. Once the home is sold, the money will go to the bank. If the house is not sold for the amount owed on it, the bank may try to recover the difference from you through a deficiency judgment. For this reason, it's important to avoid a deficiency judgment.
- If a borrower cannot comply with the terms stated in the Notice of Default, the account enters into delinquency and a Notice of Action is published in the local paper. The Notice of Action indicates a bank's intention to take back the home in question if payment is not received. The lawsuit will name homeowners, tenants, or anyone with interest in a property. The Notice of Action will be served on all people named in the lawsuit. The Sheriff's deputy will knock on door of your house in order to deliver the summons to someone 15 years or older in the house. If they cannot serve the Notice of Action, it may be published in the newspaper.
While each case is different, in general, from the time a Notice of Default is issued to when a home title is transferred after an auction, foreclosures take about 5 to 6 months. If you hire our attorneys we can discuss and explain the options available to you.
We can relieve you of some of the stress associated with foreclosure while taking steps buy you more time in your home. In some situations we may be able to help you do a short sale or deed in lieu of foreclosure. If you have a second mortgage, we may be able to do a cram down or have you released from it.
Once we've exhausted all available options to save your home, we can always file a bankruptcy, automatically initiating a stay of relief, preventing banks from pursuing collections or foreclosure actions against you.
Options for Avoiding Foreclosure
If you have fallen behind on your mortgage and have received a Notice of Default, filing for bankruptcy may be the only way to save your home or, at the very least, delay the foreclosure process. Once you file for bankruptcy, an automatic stay of relief is issued, requiring creditors to cease all collection actions and banks to halt all foreclosure proceedings. Additionally, regardless of whether you file for Chapter 13 bankruptcy or Chapter 13 bankruptcy, you may have enough disposable income leftover each month to pay your mortgage.
Contact Altamonte Springs, Florida Bankruptcy and Foreclosure Attorneys
Banks don't always inform borrowers of what their rights are under the law. If you're facing foreclosure, contact bankruptcy and foreclosure attorneys at the Kramer Law Firm to learn how we can help you. We can evaluate your situation and explain the best options available to you.
