If you are facing an foreclosure, it’s important to understand the process here in Lee County Florida.
But before we jump right in…
Get to Know the Foreclosure Process in Fort Myers, FL
So what is a foreclosure?
A foreclosure is the legal device that lenders use to take possession of a property when the borrower stops making the payments on the loan.
Foreclosures can be a traumatic event, but it’s not the end of the world.
You need to understand how the foreclosure market works in Fort Myers, FL and all of Lee county to give yourself the best chance of minimizing the damage.
Stages of a Foreclosure
A foreclosure is a process and there are several phases and there is variation between states and counties.
There are two basic ways states will foreclose on a property. They are the judicial sale and the power of sale.
Sunland Home Buyers LLC is here to help. If you would like to connect with us call (239) 963-1999 or contact us here and we would love to help answer any questions you may have here in Fort Myers and all of Lee County, FL.
Regardless of the method a state will use to foreclose, the process doesn’t generally start until after many months of missed payments, generally 3-6 months. Most of the time lenders will attempt to contact the borrower and send out notices informing them that they are in arrears.
Judicial Foreclosure:
- The lender files suit through the courts.
- A payment demand letter will be sent to the borrower.
- Most of the time you will have a period of 30 days to bring the loan up to date by providing a payment to the court and often times this period can be extended.
- Failure to provide payment to satisfy the loan, the court will issue a judgement and the lender will move to sell the property through an auction.
- When the property is sold the county sheriff serves an eviction and forces the owners to vacate the property.
Power of Sale – Non-Judicial Foreclosure
- The lender has the borrower served with papers demanding a payment
- There is a designated waiting period once this is elapsed a deed of trust is created giving control of the property to the trustee
- The trustee provides a notice and the property can be sold back to the lender through an auction
This is how foreclosures are handled in Fort Myers and all of Lee County.
If someone has any interest in the foreclosed property they must be notified in both types of foreclosures. This would apply to banks that have liens or contractors that have liens and they are entitled to collect from the auction.
After A Foreclosure Auction – What Happens Next?
When a foreclosure auction is complete the original loan is paid off, unless the sale amount is less than the outstanding loan in which case a deficiency judgment is issued agains the borrower.
The deficiency judgement is a judgement issued against the borrower for the remaining amount left on the loan amount after the auction sale.
It varies from state to state exactly how the deficiency judgement is enforced. Some states limit the amount that is owed while others apply the full loan amount.
Clear here to find out the state by state deficiency judgment laws.
It’s far better to avoid a foreclosure auction. There are often other alternatives, such as loan modifications, or trying to work out other solutions with the lender.
Another option is to protect your credit and work with a professional real estate company like Sunland Home Buyers LLC, to help you to work with your lender to negotiate a discount. Or if there is nothing to be done in working with the lender, we can possibly buy the property from you before it lands in a foreclosure auction.
We buy houses in Fort Myers Florida and help homeowners solve their real estate problems.
Contact Sunland Home Buyers Today! Call (239) 963-1999 or fill out the form on this website today! >>
Foreclosure Resource For Fort Myers FL: