What is foreclosure?

Foreclosure is a legal process in which a lender forces a borrower to give up their property collateral for a loan they have not paid back. In Florida, it is known as a judicial foreclosure process, which means that the lender must file a lawsuit against the borrower in court. This essentially gives the lender the right to take the property away from the borrower and sell it off so that the lender can recoup the money they loaned to the borrower. Foreclosure is not the same as repossession, which is a process in which a lender takes a borrower’s property without involving the court system. The foreclosure process in Florida typically begins when the borrower has missed multiple payments on their loan. The lender will then file a Notice of Default, which states that the borrower is in violation of their loan and that the lender will begin the foreclosure process. The Notice of Default will also give the borrower the opportunity to cure their loan default by the specified date. If the borrower does not pay up by the date stated, the lender begins the actual foreclosure process by filing a Complaint of Mortgage Foreclosure. After the Complaint of Mortgage Foreclosure has been filed, the court will issue a Notice of Foreclosure Sale, which details when and where the foreclosure sale will take place. Finally, the property will be auctioned off at the foreclosure sale and the highest bidder will take possession of the property.

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What is foreclosure?

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