Real estate foreclosure issues in Florida are settled as per Florida foreclosure laws. As per the dictates of this law lenders are allowed recourse only to a judicial foreclosure process in the event of default in mortgage payments. Other states in US allow lenders to use non judicial processes or power of sale foreclosure processes, but not Florida. It is imperative that all issues regarding foreclosure go through a legal process under the court's guidance.
A judicial foreclosure process could take around six months to reach completion. The mortgage document is the essential security instrument that is needed for judicial foreclosures. Florida foreclosure laws allows lenders the right to file for deficiency judgments and it also allows borrowers the right of redemption.
The Florida State Foreclosure Law forecloses mortgages based on equity. All counterclaims against a foreclosing lender are analyzed before the foreclosure proceedings come to trial. Once the foreclosure proceedings are in court the presiding judge is entitled to pass judgment. There is no need for a jury to debate the merits and demerits of the case.
It is essential that the court order contain all relevant information regarding the foreclosure. Deviation from these terms is not allowed. The lender is obliged to publish notices and advertisements regarding the foreclosure as directed by the court. The notices should be displayed on the property and in newspapers of that county in Florida where the foreclosure property is located. In Florida the foreclosure property is sold in a public auction. The buyer is decided upon the basis of the value of the bid placed by him.
In Florida the borrower's right of redemption ends automatically when the foreclosure auction is over. There is no grace period awarded for redemption unless the court expressly provides for it. On rare occasions the court may provide an opportunity to the borrower to redeem the foreclosed property under certain specific conditions. A review period is fixed by the court after the foreclosure auction to determine whether the price paid was optimum under the circumstances. This period is for a maximum of ten days. Once this review period is over the successful bidder is given a certificate of sale and the title of the foreclosed property. The review period gives all the concerned parties a chance to place their objections, if any, before concerned authorities. If the objections are found to be justified and are supported with enough evidence the court may cancel the sale and order a fresh foreclosure sale.