Tips for Those Facing Foreclosure - A New Series

Clients and Friends,

I speak to many people nowadays who are facing the stress that comes with foreclosure and other financial challenges so I decided to start a series aimed at helping you, whether you are just curious or in the throws of the legal process, to understand this process and deal with it more effectively.  So here goes - the kickoff.

Session 1:

What is foreclosure?

Simply put, foreclosure is a legal remedy (reserved in the mortgage document) which a lender may pursue in the event a borrower does not pay the mortgage payment in a timely fashion.  In order to exercise this legal remedy, a  lender must jump through a number of hoops (non-legalese) in order to obtain the property that is subject to the unpaid debt.  Clear enough?  (remember you can post questions).  The hoops that a lender must jump through will vary based upon the state and local laws of the jurisdiction where the property is located.  Thus, the advice of a local real estate attorney may come in handy.  Here in the great state of Florida, Lee County, the lender must pursue foreclosure through the courts after providing the homeowner with a notice of default and this notice must comply with certain requirements pursuant to the Fair Debt Collection Practices Act.  Typically, the lender files a lis pendens in the Courts and serves upon the borrower a foreclosure summons and complaint which must be answered within a specific time or the answer is waived.  Thereafter, the lender will attempt to obtain a judgment of foreclosure, either through default proceedings (meaning the borrower did not file an answer) or by summary judgment proceedings (another legal proceedings) or potentially by trial (which in my experience doesn't happen often).  The process can take anywhere from several months to a year after being served the initial complaint and the courts as of late (at least here in Lee County) have .  My point in describing this process is that if a borrower is attentive to the necessary process, there is time to take a careful look at the options and alternatives which will be discussed in session to follow next week - so tune in next time.  Have a great week.