What are the steps for foreclosure on commercial real estate?

Foreclosure is the legal process of taking ownership of a property that has gone into default on its loan. In the state of Florida, the foreclosure process on commercial real estate follows a set of steps which are outlined below. 1. The lender files a lis pendens with the clerk of the circuit court for the county in which the commercial property is located. The lis pendens is a legal document that publicly notifies all interested parties that the owner has defaulted on their loan and foreclosure proceedings have begun. 2. The lender then submits the foreclosure complaint to the court, along with a summons. The summons notifies the owner of the commercial property of the pending foreclosure proceedings. 3. Once it is received, the owner has 20 days to respond to the foreclosure complaint. If the owner does not respond, the court will enter a default judgment and the foreclosure process can continue. 4. If the owner does respond, then the court will set a hearing date for the foreclosure complaint. 5. At the hearing, the court will determine if the commercial property is in default and if foreclosure is the appropriate remedy. 6. If the court finds in favor of the lender then the loan will be declared in default and the foreclosure process will be complete. The lender will then take possession of the commercial property and proceed with the sale of the property at a public auction. 7. The proceeds from the sale will be used to pay off the borrower’s debt. Any remaining amount will be given back to the borrower.

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What are the steps for foreclosure on commercial real estate?

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