Florida recorded 15,251 foreclosures in the first half of 2024, the second highest in the nation. The state follows a judicial foreclosure process, meaning lenders must go through the courts to reclaim a property. While this offers legal protection, it often brings delays, stress, and added costs for homeowners.
If you’re facing foreclosure, you’re not alone—and you still have options. Understanding how to stop foreclosure in Florida can help you take back control before it’s too late. Here’s what you need to know to get started.
AT A GLANCE:
- In the first half of 2024, Florida saw over 15,000 foreclosure filings, the second-highest in the nation.
- Florida’s judicial foreclosure process involves the courts, making it more complex and time-consuming than non-judicial foreclosures.
- Foreclosure can result from missed mortgage payments, unpaid property taxes, job loss, or medical emergencies.
- Florida law provides homeowners with legal protections such as breach notices, loan mitigation options, and redemption rights.
What Does Foreclosure Mean?
Taking a loan from a bank or a lender to buy a house or property is very common everywhere. Paying back the borrowed amount within the given time duration is also very important. If someone fails to pay back the loan amount, the foreclosure situation is very likely to come into existence. Foreclosure begins after the very first missed payment.
Foreclosure can also happen if the homeowner fails to pay the property tax levied upon them. There are various reasons for falling behind in payments, financial crisis, medical emergencies, and sudden loss of job.
Introduction to Foreclosure in Florida
The foreclosure crisis peaked in 2010. The foreclosure process and mortgage services were heavily supported by state and federal laws after that. In Florida, people must sign a promissory note and mortgage when they take a loan to buy property. These documents give people some contractual rights as well.
Florida foreclosures most likely give you the right to many benefits. They are:
- Receive notice in the form of a breach letter before foreclosure.
- You can apply for loan mitigation.
- If you are in the military, you will get special protection.
- Get notified about the foreclosure and a chance to respond legally.
- Pay off your debt to prevent a foreclosure sale.
- You can redeem the property after the sale.
- Get any excess money after a foreclosure sale.
Key Points About Florida Foreclosures
- Primary Security Instrument- Mortgage
- Judicial Foreclosure- Yes
- Non-Judicial Foreclosure- No
- Right of Redemption- Yes
- Timeline- Typically 180 Days
- Deficiency Judgements Allowed- Yes
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Ways to Stop Foreclosure in Florida
There are ways of stopping home foreclosures in Florida that you need to know. Let’s cover them all:
Declare Bankruptcy
Yes, bankruptcy is a way through which foreclosure can be stopped. But you need to understand the concept of chapter 7 and chapter 13 of bankruptcy.
Chapter 13 bankruptcy in Florida: It is a common option to go for to stop foreclosure. According to Chapter 13 bankruptcy, you are given a payment plan of 3 or 5 years to catch up with the payment in arrears. The lenders will be given orders to stop going forward with the foreclosure process. They will have to give you time to get back to your payment arrangements.
Chapter 7 bankruptcy in Florida: It is a liquidation form of bankruptcy. Unless you want the Florida bankruptcy trustee to sell your house, it may be a less common option to pursue. Even though it is the lower-cost bankruptcy option, you still may not want to opt for this option.
You need to understand what your payment plan is. Is your payment plan regarding Chapter 13 bankruptcy worth pursuing? For instance, you have $150,000 in arrears on your house, and your payment plan is for 5 years / 60 months. Will you be able to pay an additional $2,500 every month to cover your arrears?
Applying for Loan Modification
It has become difficult to fully pay off the mortgage payments. There are many reasons why you can miss out on payments or get late in paying the mortgage. Before this unwanted thing happens, you may go to your lender and find out if they consider a loan modification option.
Reinstating Your Loan
Do you have enough cash to pay off the loan amount? Approach your lender with a cash offer for Florida home. See if they accept the payment and permit you to continue paying your loan amount without any legal interference. Lenders only want to recover the loan amount, and so they will accept your offer.
» Best Mortgage Lenders in Florida: Click to know about the best mortgage lenders in Florida.
Plan for Repayment
Great! You can make payments again after missing out on some payments. Find out what your lender thinks regarding your repayment plan. In the repayment plan, you are allowed to pay the missed payments slowly along with the current mortgage payments. You can come up with an agreement on the repayment plan to stop foreclosure. According to this, you agree to pay your missed payments along with the normal payments.
Refinancing
Refinancing may be a difficult option to consider. Interest rates are going up, making it difficult to think of loans. You can start with a new lender, which means a whole new agreement. There may be one drawback. It might become difficult to qualify for refinancing if your credit score is negatively affected.
» How to Buy a House in Florida with Bad Credit: Click here to know how to buy a house with bad credit.
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Sell Out Your Home
Selling your home in Florida can help you avoid foreclosure and minimize damage to your credit. If you have equity, you may be able to pay off your loan and find a more affordable place to live. There are thousands of homes for sale in Florida that suit every budget and lifestyle.
Short Sale
A short sale means that you can sell your home for an amount that is less than the amount you owe. The reason behind this is that sometimes your home is sold for a lesser amount in the auction. The bank/lender is sometimes not able to recover the whole amount they are hoping for. Home staging companies in Florida can help you get more than the asking price.
Deed In Lieu of Foreclosure
A deed in lieu of foreclosure takes place when the homeowner transfers the property to the lender. The homeowner hands over the property to the lender, clearing all the debts they owe. The property is then owned by the lender. You have to vacate the property as soon as possible. This way, you can easily save yourself from any damage.
How Houzeo Works?
Here’s how Houzeo works—and why it’s one of Florida’s best home buying and selling websites.
