How does foreclosure work in Florida?

How does foreclosure work in Florida?

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.

How long is the foreclosure process in Florida?

about 4-6 months
Florida foreclosures occur through the judicial system and can take about 4-6 months to complete.

How long does a deficiency judgments last Florida?

If the Bank gets a deficiency against you, the deficiency judgment will be recorded in the public records and will be collectable for up to 20 years. In fact, even after you die, the Bank can collect against your estate.

Is Florida a judicial or nonjudicial foreclosure state?

Florida is a judicial foreclosure state. Judicial foreclosure means foreclosure must go through the court system, be approved by a judge, and the litigation completes when the home is sold at auction to pay off the mortgage balance. Florida does not have non-judicial foreclosure.

Can a bank foreclose in Florida?

Florida is a judicial foreclosure state. Therefore, a bank or HOA seeking to foreclose a home must receive approval from a judge. The case must be filed in the circuit court where the property is located. Under Florida foreclosure law, all mortgage foreclosure cases are to be conducted in a court of equity.

How does a Florida bankruptcy stop a foreclosure?

In Florida, filing for bankruptcy will stop a home foreclosure action by your lender under the automatic stay provision of the U.S. Bankruptcy Code . When you file for either Chapter 13 or Chapter 7 bankruptcy, the court will automatically enact a stay on all debt collection actions against you.

Can a Florida property be exempt from bankruptcy?

Like all states, Florida has a set of exemptions you can use to protect property—such as a home, car, or retirement account—when filing for Chapter 7 or Chapter 13 bankruptcy. The bankruptcy chapter you choose to file will determine what will happen to any nonexempt property.

What happens if you file Chapter 13 bankruptcy in Florida?

Though a first home mortgage is not modified in a Chapter 13 bankruptcy, the bankruptcy filing can help some debtor’s save their home from foreclosure. Florida bankruptcy courts have implemented a program whereby debtor homeowners and may address mortgage modification in a court supervised mediation.

What does Chapter 7 bankruptcy mean in Florida?

Chapter 7 bankruptcy is also known as liquidation bankruptcy. In Chapter 7, the borrower may be required to sell certain assets as a requirement of the case. Fortunately, not all of a debtor’s assets will be subjected to liquidation by the bankruptcy court. Florida bankruptcy law provides exemptions for many of the assets a debtor might own.

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