Foreclosures, like any other real estate process, are something that you should not try and tackle on your own accord or by Googling your problem. For instance, do you know what to do if served a deficiency statement? The bank has five years from the date of the foreclosure sale to take the deficiency judgment if they are going to take one at all. If the bank takes the deficiency you have three choices, do nothing, and just let the judgment sit and fight any attempts at asset collection or wage garnishment by claiming exemptions, negotiate a payoff of the judgment, or file bankruptcy. Florida law states that if the foreclosure sale does not cover the balance due the lender must sue the borrower.
This timeline begins after the summary judgment hearing, approximately 45 days later. The foreclosure sale date will be about 75 days into the foreclosure process and shortly after the lender can sue the borrower to get a deficiency judgment for the remaining cost of the loan. Without adequate defense techniques, the home could be lost in a shorter amount of time than this, which is where the three options come in. If this is the case, it’s unlikely that means that you will be able to just walk from your home. Lenders do have the option to come after homeowners even after the auction sale. Most real estate attorneys will attempt to protect both the home and its owner by fighting the judgment, negotiating payoffs, or declaring bankruptcy.
Being served anything but a delectable ice cream sundae or a cold beer is not something anyone wants to deal with or even want to prepare for. However, during the recent recession it’s inevitable for some people not to deal with the dreaded foreclosure papers. So, how do you respond, what’s the next step?
Once a home goes into foreclosure it can’t be put up for sale and done away with. There is a legal process that requires the lender to give some form of a formal notice or several notices leading up to the sale. The kind of notice you will get depends on where you live. Some will get a notice of default allowing them time to reinstate the mortgage, some will get a notice of default and sale, and others are simply notified, privately or publicly, of the sale date.
Depending on your personal circumstances, you might receive a notice of foreclosure without cause. You respond by filing an answer or a motion to dismiss with the clerk of court where the complaint has been filed. You will most likely be summoned to the foreclosure proceedings with the appropriate court. You will be given a certain amount of time to respond to the complaint. In almost all judicial foreclosure states, if the judge orders the foreclosure sale, you’ll get a notice telling you when and where the sale will take place.