Florida’s Foreclosure Process

Foreclosure is a process best avoided at all costs. However, knowledge of Florida’s foreclosure process can help you understand what you need to do if you find yourself sucked into it in the future. The process takes place as follows:

1. You fall behind on several mortgage payments. The mortgage servicer starts calling to remind you of your delinquency and tries to collect payments. The servicer may try to work out a deal to help you stay current on your loan, such as a loan modification, forbearance, or payment plan.
2. You are sent a breach letter informing you that your loan is in default. The letter will demand you to cure the default and will recommend an action to do so.
3. You become delinquent on your loan for 120 days and the mortgage servicer gains the authority to file a case against you in state court to start the foreclosure. You are served a summons, which gives you 20 days to file an answer. If you don’t file an answer, the lender gets a default judgment from the court, otherwise…
4. You provide a reasonable defense and the case goes to trial.

The Negative Impact of Foreclosures

Economic forecasts typically include foreclosure rates and their impact on the housing market. After all, foreclosures affect not only the homeowner but also the entire neighborhood and, consequently, the local government and the economy as a whole.

Foreclosures hurt housing values

Several studies reveal that foreclosures have an adverse effect on local property values, especially during a recession. With every abandoned home, the risks of vandalism, crime, and blight increase. The Center for Responsible Lending estimates that each foreclosure reduces home values in a neighborhood by about $70,000.

Foreclosures hurt local governments

Likewise, foreclosures exert negative impact on local governments due to a decline in tax revenues. Property tax comprises at least two-thirds of the revenues collected by most local governments, which is directly impacted by increase in foreclosures and declines in home prices. Additionally, sales taxes—another major source of revenue for local governments—suffer as a result of the reduction in consumer spending brought about by foreclosures.

Foreclosures hurt the larger economy

Declining home values affect both investment in new construction and consumer spending. The bad news is that these two factors are major drivers of unemployment. In turn, this increase in unemployment leads to a vicious cycle that precipitates subsequent foreclosures as well as further declines in investment and spending.

Representing Yourself in Foreclosure Hearings?

There are many reasons why people face foreclosure: loss of employment, a grave illness, the death of a spouse. Yet they all boil down to the same cause: the inability to make timely mortgage payments.

Even in such a tight financial situation, many homeowners forgo hiring a foreclosure attorney to represent them in hearings. After all, hiring a lawyer entails additional costs that may otherwise be used to service the loan. If you’re thinking about representing yourself in court, however, know that there are crucial drawbacks to doing so:

You’re Overmatched

In all foreclosure cases, the homeowner is up against the lender, an entity that has the resources to hire a highly skilled legal team. While a David-versus-Goliath outcome isn’t entirely impossible, it is very nearly so. To stand any chance of winning, you truly need professional legal representation.

You’ll Miss Loopholes

Foreclosure attorneys scrutinize your mortgage documents for any irregularities—loopholes that might discredit your lender and cause the judge to throw out the case. This may include improper compliance with the foreclosure filing procedure or any other documentary discrepancies. Of course, only experienced lawyers can spot these anomalies and use them to mount your defense.

You Might Miss Deadlines

What happens if you don’t respond to the foreclosure notice? You lose the case automatically. That’s because the foreclosure process has very strict timelines that are easy to miss. Lawyers are aware of all these and ensure that you’ll never miss a response or hearing date.