Lenders in Florida are not required to foreclose on property after a bankruptcy is filed. In fact, if you are in danger of losing your home and you want to keep it, filing for bankruptcy right before the foreclosure is a good way to keep your home, at least until the bankruptcy is discharged. Many Florida residents file Chapter 7 or Chapter 13 bankruptcy proceedings, but manage to keep their homes. Florida law does not require lenders to foreclose. If you are working out a loan modification or continuing to pay your mortgage on time, your bankruptcy will probably not affect your rights to your property.
Because the foreclosure process and the bankruptcy laws are so intertwined in Florida, make sure you have an excellent attorney who understands both areas of the law before you file for bankruptcy, especially if you want to keep your home out of foreclosure. Talk to a lawyer with experience in helping homeowners keep their homes, even during or after a bankruptcy.
If you are giving up your home in the process of your bankruptcy, the lender will foreclosure on you after bankruptcy is discharged. Talk to your lawyer about the timing. Many attorneys will know how to position the filing of your bankruptcy at the right time, to keep you in your house for as long as possible. The foreclosure process in Florida operates on a fairly strict timeline and you don’t want to find yourself surprised when the foreclosure actually happens. Stephen K. Hatchey, a Florida real estate attorney, can help you navigate this and many other legal matters. To receive a free consultation, contact our offices at 813-549-0096.