Florida Foreclosure Information
What is a Foreclosure?
A foreclosure is when a homeowner fails to make their mortgage payments or neglects to go through the short sale process. The lender will seize control of the property and put it up for a foreclosure auction. If it fails to sell at auction, then the lender takes control of the property and puts it on the open real estate market.
Foreclosures give prospective home buyers a great opportunity to purchase an Orlando foreclosure home at a discount. While lenders aren’t discounting them as low as they were in 2010-2011, there are still opportunities to pick up a home under market value. Remember if you find one you need to act fast because it is likely the next person to see it will buy the home. Unlike buying an Orlando short sale which can take between 4-12 months, buying an Orlando foreclosure can close in 30-45 days.
If you are thinking about walking away from your home instead of going through the short sale process, we encourage you to speak to an Orlando foreclosure defense attorney to discuss your options. A foreclosure will kill your credit and you won’t be able to get a new mortgage for at least seven years. If you put a little effort into selling your home and go through the short sale process, then your credit might only be impacted for two years.
Below are the stages of foreclosures to better understand the foreclosure process:
This first thing that will set the Florida foreclosure process in motion is to miss scheduled mortgage payments. The reason they are missed doesn’t matter. It could be due to some kind of hardship or simply because the mortgage exceeds the value of the home. We can’t stress this enough; if you have missed mortgage payments and want to sell your home then Contact Us today and we can set you up with a Florida foreclosure attorney to help you.
The lender will file a public notice, lis pendens, with the County Recorder’s Office and post a notice of the front door of the house to notify the homeowner. It usually takes between three to six months to initiate a public notice. If you receive a notice of foreclosure then it is important to immediately find a local real estate attorney to stop the foreclosure and help you enter into a short sale. Your credit will thank you.
Once the homeowner fails to either not pay the mortgage or sell the home through a short sale, the lender will auction the property for sale to the highest cash bidder. If the property fails to sell at auction, then the property will be listed with a real estate agent and entered into the Multiple Listing Service.
Once the property fails to sell at auction, it becomes a bank owned property. Bank owned properties are usually sold fast because of all the cash investors however; some lenders have rules on who can purchase their properties. Fannie Mae for example has a first look program which encourages owner occupants. It always lists the home to owner occupants for the first 15 days and considers them first to purchase the home. Then, it is opened up to investors.
For more information about Orlando foreclosures please Contact Us or call 407.647.4321.