Foreclosure - How Much Time Do I Have?

How much time do I have? That is the most frequently asked question of me - it is the first question from most homeowners during the initial consultation. Naturally, the answer to the question depends on the state in which you live. There are judicial and non-judicial states - judicial foreclosures go through the court system whereas non-judicial have no court intervention.

Florida is a judicial state. The foreclosure process begins with the lender filing a complaint and a Lis Pendens is filed. The homeowner is served with a notice of the complaint (usually by a process server) and the homeowner will have an opportunity to appear before the Court. The validity of the complaint will be determined and if valid, a judgment will be issued for the amount due (loan, late fees, attorney fees & costs, past due interest, etc.) The next step is a writ issued by the court and it authorizes the sheriff sale. Your property will be sold to the highest bidder at the auction or, as it frequently happens, the property goes back to the bank.

Basically, in Florida, the entire foreclosure process could be completed in as little as 90 days. More often, the process takes about five months, sometimes longer.

One popular fallacy is that a homeowner can simply file bankruptcy and delay the auction or sale indefinitely. While it is fact that filing for bankruptcy can slow the foreclosure process, there are other ramifications to consider before making this leap. In October of 2005, a new law went into effect making it harder to use bankruptcy as a means to stall a foreclosure. Prior to October 2005, homeowners could manipulate the system and literally stay in their house, free of payments, for years.

When a homeowner has foreclosure looming, the best decision is to take action to minimize the damage to your credit, your family and your financial well being.

Foreclosure solutions should not be of the do-it-yourself variety - ask questions, get answers.

Take control.