WHAT IS A FORECLOSURE
Foreclosure sales are sales of properties required to be sold in foreclosure procedures due to final judgments. To satisfy the judgment, the properties are offered for sale to the highest bidder. In compliance with Florida Statutes, the sale or public auction is conducted by the Clerk of the Circuit Court.
The Foreclosure Process
If a property owner has failed to pay their mortgage for several months, a bank or mortgage company has the right to accelerate the loan and force the sale of the property to satisfy the debt. Because the lender is looking to recoup its loss, these homes typically go on the market at a lower price than surrounding properties. This is what makes this real estate so attractive to investors and prospective homeowners.
Foreclosure Properties Owned by Banks or Real Estate
If a property is not purchased by a third party during the foreclosure auction, it will become bank-owned or real estate-owned (REO). A property may fail to sell at auction for a variety of reasons, including low offers that aren’t enough to satisfy the foreclosure judgment. A property becomes real estate owned (REO) once a bank has taken legal possession of it. When this occurs, the bank usually has the property listed for sale by a real estate
In Florida, foreclosures are done through the court system, which means that the lender must file a case in state court. Depending on the size of the court docket, forcing an uncontested sale can take anywhere from 180 to 200 days. If the borrower fights the action, it can take even longer. As with any lawsuit, there are court filings, summons, preliminary meetings, and other things that can slow down the process even more. If the user files for bankruptcy during this time, the process can also take longer. However, after a summary judgment has been made, a foreclosure sale date is usually set within 30 to 60 days. This date is when the land will be sold at auction to the public.