When a homeowner falls behind on his or her mortgage payments and doesn’t make new arrangements with the lender, he or she risks foreclosure. In most cases, the lender can’t foreclose on the property until they have filed a lawsuit and received permission from the court. If the court dismisses it, the lender has to either re-file the lawsuit or try to collect the property or mortgage payments another way.
What to Know About the Foreclosure Process
In Florida, a lender can’t foreclose on a property without a court order. If a homeowner hasn’t made mortgage payments and the lender decides to foreclose the property, it usually files a complaint with the court. The homeowner then receives a copy of the complaint and has a choice to ignore it, answer it or file a motion to dismiss it. During the hearing to review the complaint, the judge will determine whether to proceed with the foreclosure case or to dismiss it.
What to Know About a Dismissal
If a judge decides to dismiss the foreclosure case, the lender can’t proceed with the foreclosure process. The judge might dismiss a foreclosure case if he or she doesn’t believe the lender owns the mortgage or if he or she doesn’t think the lender has followed the state’s foreclosure process properly. The mortgage lender can also dismiss the foreclosure case if it notices that it has made a mistake during the procedure or if the homeowner has made arrangements to pay the debt.
What to Know About Post-Dismissal
If a judge decides to dismiss the foreclosure case because the mortgage lender made a mistake or doesn’t have the ability to file a lawsuit against the homeowner, the lender has to start the legal process all over again. It’s important to note, that it’s possible to dismiss a foreclosure case in some states with prejudice, meaning that the mortgage lender can never re-file it. And some states limit the number of times a mortgage lender can file a foreclosure case, even if the judge decides to dismiss it without prejudice. To learn about Florida’s laws regarding foreclosure cases, it’s important to speak with a knowledgeable real estate attorney.
What to Know About a Voluntary Foreclosure
If a mortgage lender has decided to foreclose on the property, the homeowner can sometimes propose a voluntary foreclosure, known as a ‘deed in lieu of foreclosure,’ and request that the lender dismiss the case. In most cases, a voluntary foreclosure doesn’t impact the homeowner’s credit, and it prevents a lender from filing a lawsuit if the monies from the sale of the property don’t cover all of the homeowner’s debt. If you voluntary foreclose, you waive the right to receive any profit from the sale.
Stephen K. Hachey can help you wade through this difficult process to reach a positive solution. Call 813-549-0096 today!
***The opinions in this blog are those of the author whom takes full responsibility for the content. Like all other content on the site, this does not constitute legal advice and is for general information purposes only.***