Receiving a foreclosure notice of default on your Florida home can be a cause for concern and confusion. Whether you fall behind on your payments due to a divorce, medical hardship or job loss, foreclosure can seem like a giant obstacle to overcome. Let’s walk you through what this document is, what it means for you and the steps you can and should take if you are on the receiving end of this notice.
Understanding Foreclosure in Florida: An Overview
In Florida, as in many states, the foreclosure process starts with the courts. A judge has to sign off on an order after determining that foreclosure is, indeed, the next step. In years past, lenders could foreclose with little notice, and borrowers had little legal protection. Current laws balance the scales a bit more, and part of that balance is requiring that borrowers not only are notified they are facing foreclosure, but also with tips on how to avoid it.
Lenders are still allowed to charge errant borrowers certain fees, such as late fees, appraisal fees and inspection fees. These can be charged every month that a borrower is late on a payment or fails to pay at all. Be sure you fully understand what fees are allowed under the terms of your mortgage or other lender agreement, and the allowable amount of each fee.
Once the clock starts ticking on the foreclosure process, a borrower can expect to see their home go up for foreclosure sale in about 6-12 months. Before that happens, read on to fully understand all the steps in the process and how you can find another way out of a tough financial situation.
What is a Foreclosure Notice of Default?
This crucial document is filed by a lender as a signal to the court that the foreclosure process should begin. The notice is filed no sooner than 120 days past the first missed payment. It lists previous attempts that the lender has made to collect on those payments and any other actions taken regarding the loan.
Once the notice is approved by a judge, the borrower has 20 days to file a response with the judicial system. If that happens, the foreclosure follows the standard judicial process through to its collection. If no response is filed, the judge will usually give a default judgment that puts the home up for a foreclosure sale, meaning the homeowner will lose their home.
Legal Implications of a Foreclosure Notice of Default
Firstly, ignoring the delivery of a legally binding document is never a good idea. If you haven’t hired legal counsel yet, this is the time to do so. While there are provisions in place for a borrower to find a way out of the credit disaster a foreclosure could pose, if the borrower doesn’t read or understand those provisions, it can cause many problems.
A foreclosure on your record will negatively affect your credit record and score and make it tough to secure another loan for a home, a car or anything else that would require finding a lender willing to take you on. In some instances, a poor credit report can also cost you job opportunities, compounding the problem. 
Key Steps to Take
No one wants to deal with a foreclosure notice and the stresses that come with it. However you can do certain things that will get you on track again. The following actions will help you do just that.
1. Stay Calm and Plan Strategically
Letting worry take over will often lead to a borrower facing foreclosure making choices that can only make matters worse! Find legal advice to point you in the right direction as you work to stay in your home, if you can, or find another avenue that will allow you to keep financial damage to a minimum.
2. Educate Yourself on Florida’s Foreclosure Process
Knowledge is power. Do an internet search on trusted legal sources such as Nolo.com or Lawyers.com. You can also find a variety of easy-to-follow flowcharts online that will spell out the process in simpler terms. Once you have an understanding of what comes next, you will be able to plan your legal strategy.
3. Gather Your Financial and Legal Resources
Fighting a foreclosure takes time, money and legal expertise. In addition to a skilled attorney’s fees of $1,000 to several thousand dollars, you will have court costs, document charges and more to plan for, depending on your particular situation. Get a legal consultation for a better idea of what you are looking at financially so you can decide whether you want to or even can fight the foreclosure and keep your home.
Exploring Your Options to Avoid Foreclosure
If you find that keeping your home isn’t feasible, that doesn’t necessarily mean that you have to give up your home and put a huge dent in your credit. There are a couple of avenues that you can take to avoid the foreclosure auction.
1. Sell Your Home FAST for Cash Before the Foreclosure
Companies like ours often buy Florida homes that are in the process of foreclosure. Depending on what you still owe to your lender and the property’s market equity, you could sell your home, pay off debts and fees and get your life back on good financial footing.
Sure, you aren’t likely to gain top market value since investors like us will take on the costs of making any home repairs needed before finding a new owner for the home. However you will be removing the burden and stress of foreclosure.
2. Consider Short Sales and Rent-Back Situations
Don’t have much equity built up in your home? You might want to think about a short sale. In those cases, you and your lender would work together and agree on a sales price for the property that is below market value. This keeps you out of foreclosure court, but if you owe more money on the loan than that agreed-upon sales price, you might still have to pay it back to the original lender.
You also might look for a buyer for your home that’s facing foreclosure who will allow a rent-back agreement. That is basically a rental contract that gives you more time to find a new place to live without you continuing to accrue more property debt and possibly keep you out of bankruptcy.
Here’s a short video testimonial from one of our past clients Dave. He reached out to us back in 2012 when his home was shortly from being sold at the foreclosure auction. We negotiated a short sale with his lender on his behalf, stopped the foreclosure sale, purchased the house from him and were even able to get him some cash from the sale as moving assistance money!
Communicate With Your Lender
The key to the entire pending foreclosure process is to be upfront and honest with your lender. Showing them all your cards and being willing to make things as right as possible could open up other paths to settling the debt and will make the lender more willing to work with you. This isn’t a time to try to hide anything or ignore any special circumstances regarding your home and loan.
Final Words
If you’re facing foreclosure and want to sell your house fast, we can help. We buy homes for cash in Florida, and we can help you have a stress-free sale by buying your property directly from you before the auction.
Want to know more? Have any questions about the process?