Foreclosure is most simply defined as the legal action taken by a creditor (mortgage lender or bank) to repossess the collateral (house or other real property) for a loan that is currently in default. To default on a mortgage loan, the borrower must have failed to meet the terms of his or her mortgage agreement – such as failing to pay the mortgage for a certain period of time. The exact time at which a borrower may be considered to be in default and that the mortgage lender will begin foreclosure proceedings will depend upon the particular agreement.

Causes for Foreclosure

A homeowner may face foreclosure because of any one of a number of reasons, and they all result in nonpayment of the loan. Some reasons may include:

• Being laid off or fired from one’s job
• Accumulating excessive debt and bills
• A mortgage payment that rises excessively and unexpectedly
• Inability to work because of medical reasons

At times, a borrower may go into default on his or her home loan because of predatory lending or a scam of sorts that caused them to purchase a home that they actually could not afford in the first place.

The Foreclosure Process in Florida

In Florida, the foreclosure process will last approximately 2 to 3 months or longer if you choose to fight to keep your home or sell it yourself. The process may go much as follows:

• The borrower goes into default on his or her loan
• The lender gives the borrower a notice of default
• If the mortgage is still unpaid or not brought up to date, the lender will file a lawsuit at the county courthouse
• You will be informed of the lawsuit, or “served”
• You will have 20 days to answer the lawsuit
• If you answer with the court within 20 days, a hearing will be held in front of a judge
• The judge will make a ruling either in favor of you or the lender
• If the ruling is in favor of the lender, a foreclosure sale date will be set
• The property will then be sold by the lender, ending the foreclosure process and terminating your right to the property
  
  
  
  

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