Foreclosure Law: 

How are mortgage liens treated in Florida?

Florida is known as a lien theory state where the property acts as security for the underlying loan. The document that places the lien on the property is called a mortgage.

How are Florida mortgages foreclosed?

In Florida, the lenders go to court in what is known as a judicial foreclosure proceeding where the court must issue a final judgement of foreclosure. The property is then sold as part of a publicly noticed sale. The court with jurisdiction over a foreclosure is known as the circuit court. A complaint is filed in circuit court along with what is known as a lis pendens. A lis pendens is a recorded document that provides public notice that the property is being foreclosed on.

What are the legal instruments that establish a Florida mortgage?

The documents are known as the mortgage, note, and in a commercial transaction, a security agreement. Sometimes the mortgage document is combined with the security agreement. A mortgage is filed to evidence the underlying debt and terms of repayment, which is set forth in the note.

How long does it take to foreclose a property in Florida?

Depending on the court schedule, it usually takes approximately 180-200 days to effectuate an uncontested foreclosure. This process may be delayed if the borrower contests the action, seeks delays and adjournments of hearings, or files for bankruptcy.

Is there a right of redemption in Florida?

Florida has a statutory right of redemption, which allows a party whose property has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs. There is a time limit to undertake such a redemption.

Are deficiency judgments permitted in Florida?

Yes. A deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures. This means that the borrower still owes the lender for the difference between what the property sold for at auction and the amount of the original loan.

What statutes govern Florida foreclosures?

The laws that govern Florida foreclosures are found in F.S. 702.01 et. seq. To view these statutes on the web, you can visit:

http://www.leg.state.fl.us