Understanding the foreclosure process in Pensacola-Florida is an important part of navigating your own home foreclosure. In Florida in general. We have the same law when it comes to foreclosure. What applies in Pensacola, Florida, Is the same law that applies in Miami Florida. In this article we will discover understanding the foreclosure process in Pensacola, Florida or anywhere in the state.
Before we dive in…
What is foreclosure anyway?
Foreclosure in Florida is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments.
It’s a long process at the homeowners expense more than anyone else. When I say else I mean the lenders. That’s why they don’t mind executing the foreclosure because they have everything to gain and nothing to lose. On the other hand, Homeowners have everything to lose. That’s why lenders don’t mind the foreclosure at all!
In Florida, foreclosures are “judicial,” which means the lender must file a lawsuit in state court. The lender initiates the process by filing a complaint with the court and having it served to the borrower, along with a summons.
Foreclosure is no fun. But just know that it’s not the end of the world. There’s ways that you’re able to get out of it, like short sale ( With the approval of the lender), Finding a cash home buyer like Quality Properties Of Northwest Florida LLC. Or you can ask the lender to do loan modification (With lender approval).
It all really depends on what’s your current situation when you’re facing foreclosure in Pensacola, Florida. Or anywhere in the state of Florida.
Understanding the foreclosure process in Pensacola, Florida. Will give you the knowledge you need to be able to handle it well. And also to choose the right option for you and your family.
When you know how foreclosure in Pensacola-Florida works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.
The Basic Stages of A Foreclosure
There are a few stages that are important to any foreclosure process.
Foreclosure works differently in different states around the country.
The two ways different states use to foreclose upon a property are: judicial sale or power of sale.
Connect with us by calling (850)346-4995 or through our contact page to have us walk you through the specific foreclosure process here locally in Pensacola _ Florida.
In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.
Under Judicial Foreclosure:
- Your mortgage lender must file suit in the court system.
- You’ll get a letter from the court demanding payment.
- Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
- If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.
Under Power of Sale (or Non-Judicial Foreclosure):
- The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
- After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
- The trustee can then sell your property to the lender at a public auction (notice must be given).
Anyone who has an interest in the property must be notified during either type of foreclosure.
For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
What Happens After A Foreclosure Auction?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds.
Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.
Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at Quality properties of Northwest Florida LLC to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you need to sell a property near Pensacola, we can help you.
We buy houses in Pensacola-Florida like yours from people who need to sell fast.
Give us a call anytime At Quality Properties Of Northwest Florida LLC At 850-346-4995 or
fill out the form on this website today! >>
Another Foreclosure Resource For Pensacola-Florida HomeOwners: