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Unfortunately, real
estate foreclosures have become a fact of life in the South
Florida real estate market. With the crisis in the mortgage
markets and a downturn in the economy, more and more homes
and commercial property are being foreclosed to pay off
debt.
It is important to understand the rules and regulations
regarding foreclosure to assist you in this crisis. This
is equally true for the owners of property subject to foreclosure,
as well as for those looking to purchase properties at auction
or otherwise.
First, it is important to mention that you should always
contact an attorney to assist you in understanding your
rights and responsibilities. Realty attorneys can definitely
assist your understanding and also work to prevent you from
making a mistake that can cost you tens of thousands of
dollars. These mistakes can be simple administrative errors
or timing errors that are not really at any fault except
for a lack of oversight.
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Mortages in the state
of Florida are ruled by Title XL-REAL AND PERSONAL PROPERTY
in Chapter 702 - FORECLOSURE OF MORTGAGES, AGREEMENTS FOR
DEEDS, AND STATUTORY LIENS. If you'd like to view the text,
you can click
here for the 2007 version.
Though you should consult an attorney, we have some general
information here. This is by not means an exhaustive list.
Seriously, consult an attorney.
1) Right of Redemption. The state of Florida allows an owner
the right to redeem himself by paying off the mortgage prior
to auction even after being notified of foreclosure. There
is a time limit. Consult a lawyer!
2) Deficiency Judgements. If a property is auctioned and
doesn't raise enough money to eliminate the associated debt,
a deficiency judgement can be sought for the additional
funds. That means that it might not be wise to just walk
away from your foreclosed real estate thinking you are off
the hook. A foreclosure is an important event.
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