Foreclosure

What Is Foreclosure?

Foreclosure is the legal process a lender uses to take ownership of a property when the borrower defaults on their mortgage payments. The lender files a lawsuit, obtains a court judgment, and the property is sold at a public auction to satisfy the debt. In Florida, foreclosure is a judicial process governed by Chapter 702, Florida Statutes.

Florida Judicial Foreclosure Process

Because Florida is a lien theory state, the lender cannot simply take the property. Every Florida foreclosure follows this court-supervised process:

1. Default and notice — The borrower misses payments. The lender sends a demand letter and, in most cases, a notice of default. Most mortgages require at least 30 days' notice before the lender can accelerate the loan.
2. Complaint filed — The lender files a foreclosure complaint in the circuit court of the county where the property is located. A lis pendens (notice of pending litigation) is recorded in the public records.
3. Service of process — The borrower is formally served with the lawsuit and has 20 days to respond.
4. Response and defenses — The borrower can file an answer raising defenses such as lack of standing, improper notice, or predatory lending.
5. Summary judgment or trial — If the borrower does not contest or loses, the court enters a final judgment of foreclosure setting the sale date.
6. Public auction — The property is sold at auction, typically on the courthouse steps or through an online platform. The highest bidder wins.
7. Certificate of title — The clerk issues a certificate of title to the winning bidder after 10 days (the objection period).

Timeline

An uncontested Florida foreclosure typically takes 6 to 12 months from the filing of the complaint to the auction sale. Contested cases can take 18 months to 3+ years, depending on the defenses raised and court docket congestion. Florida's judicial foreclosure process is one of the longest in the country.

Deficiency Judgments

Under Section 702.06, Florida Statutes, if the foreclosure sale price is less than the outstanding loan balance, the lender can seek a deficiency judgment against the borrower for the difference. The court determines the deficiency based on the fair market value of the property at the time of the sale, not the auction price.

Alternatives to Foreclosure

• Deed in lieu of foreclosure — Borrower voluntarily transfers the property to the lender.
• Short sale — Property is sold for less than the mortgage balance with lender approval.
• Loan modification — Lender agrees to change loan terms to make payments affordable.
• Forbearance — Lender temporarily reduces or suspends payments.

Related Terms

• Mortgage — The security instrument that enables foreclosure
• Lien Theory — Why Florida requires judicial foreclosure
• Deed in Lieu — Voluntary alternative to foreclosure
• Short Sale — Sale below mortgage balance with lender consent

Barnes Walker Foreclosure Services

Barnes Walker's litigation attorneys represent both lenders and borrowers in foreclosure proceedings throughout Southwest Florida. The firm handles foreclosure defense, deficiency judgment negotiation, and post-foreclosure title issues. Request a legal inquiry for assistance.

Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC