What is the Florida Foreclosure Time Line

A Foreclosure is when the Borrower is behind on their payments and the Lender takes legal action against them in order to seize the property. The Lender becomes distressed when a borrower gets behind in making their payments. They are in the business of making loans and are not in the business of repossessing properties. When a borrower defaults, the loan becomes a nonperforming asset, at which time it is no longer earning interest. If a loan is not earning interest, it is not producing income for the lender.
In addition to not generating interest income, nonperforming loans actually cost the lender more money because of the lost earning power of the assets and the legal and administrative costs associated with collecting the loan or repossessing the property.

Example: (If the lender has a $200,000 nonperforming asset, then they are required to keep 6 to 8 times that amount in reserves which is $1,200,000 to $1,600,000.) Therefore if the lender would take a discount of $160,000 for the $200,000 loan, it allows them to put back into circulation the $1,200,000/$1,600,000 allowing them to collect interest making up for the $40,000 short sale that they took on the $200,000 loan.

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What is the Florida Foreclosure Time Line?

When you buy a house in Bradenton, Florida with borrowed money, your lender will place a lien against your property by using a Mortgage or a Deed of Trust. The Deed of Trust or the Mortgage is recorded at the courthouse telling the public that you owe them that amount of borrowed money. You will sign a Note, which you personally guarantee that you will pay the borrowed money back to the Lender.

FIRST MONTH:Sellers get behind on their first payment. They receive a letter from the lender advising them that they did not receive their payment.

SECOND MONTH:Sellers get behind on their second payment. They receive a letter from the lender advising them that they did not receive their payment and they need to remit a payment promptly.

THIRD MONTH:Sellers get behind on their third payment. They receive a letter from the lender advising them that they did not receive the payment and that the lender has forwarded this file to the Attorney. The Attorney will start foreclosure proceedings if the seller does not pay.

FOURTH THROUGH EIGHT MONTH:A Complaint for Foreclosure Summons and a Notice of Lis Pendens is filed with the Court advising the public that the Sellers are in foreclosure.

After the sale, there is a 10 day waiting period after the foreclosure sale before Clerk issues Certificate of Title. At that time the new owner can have the Sheriff show up and set the old owner's possession out on the curb. The lock's can be changed and old owner would be trespassing if they go back into the house.