The number one piece of advice I can give you is to be proactive. You do not need to wait to be served papers saying the foreclosure process has started. If you are struggling, now is the time to take a step to avoid foreclosure. Read on for foreclosure demystified!
Foreclosure is a process. In Florida, Pensacola, it is a judicial process that can take numerous months to end where your lender has the house sold through the county auction calendar. The Escambia County and Santa Rosa County Florida auction calendar is accessible by the public.
A foreclosure can be initiated by your lender, a homeowners’ association, or property tax delinquency. Once the foreclosure process is started all other lien holders are contacted by the entity initiating the foreclosure.
When the lender takes back the house, they are responsible for the upkeep, insurance, property taxes, and association dues. It can be expensive for the lender. At this phase the house is foreclosed (past tense) and is often referred as REO, “Real Estate Owned”. The lender is not in the business of having REO’s on their book because it is a money losing operation for them.
The first step is the default. This occurs upon the first missed mortgage payment. Federal Law requires that the lender wait until the borrower (homeowner) is at least 120 days delinquent on the mortgage.
The next step in Florida, is the lender has a Lis Pendens filed in the county of where your house is located. The Lis Pendens is filed by the lender’s attorney. Your lender has legal counsel. The filing of Lis Pendens document is public record and is recorded by the county clerk of courts. The purpose is to notify the world that a lawsuit has been filed concerning real estate.
The Final Judgment is issued by the court that sets the auction date and the amount owed on the mortgage and the associated costs/penalties, attorney fees, interest, etc.
What should you do at the first hint of trouble? Contact your lender.
Better Homes & Gardens Real Estate Main Street Properties
1313 Creighton Rd
Pensacola, FL 32504
Please seek financial and legal advice from licensed professionals