What is the foreclosure process for a reverse mortgage?

The foreclosure process for a reverse mortgage in Florida is the same as for a traditional mortgage, with additional considerations given to reverse mortgage borrowers. To begin the process, the lender files a notice of default with the county clerk where the property is located, and records a notice of sale. This step notifies the borrower that they are in danger of foreclosure and the lender will start foreclosure proceedings within 45 days of filing. Next, the lender must provide the borrower with a due-on-sale notice, which outlines the amount that must be paid to reinstate the loan. The borrower then has 90 days to either pay the full amount or start negotiations with the lender. If the borrower cannot reinstate the loan or negotiate a resolution, the lender may move forward with the foreclosure process. The lender must then hold a public auction, typically in the county courthouse or on the county clerk’s website. The property is sold to the highest bidder; however, the bidder may be the lender itself, in which case the lender takes back the property and the borrower is evicted. Finally, the lender must file a certificate of title with the county clerk, officially transferring ownership of the property to the new owner. The former homeowner is responsible for any remaining debt on the property after it is sold. Any remaining debt that the borrower fails to pay may appear as a lien on their credit report.

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What is the foreclosure process for a reverse mortgage?

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