Florida Foreclosures & Auctions
When a borrower gets into difficulty with paying the mortgage, they could go into default on the loan. They can be given notice by the bank via a public notice called a “Lis Pendens” and enter a pre foreclosure time period. During that period the mortgagee can sell a home and pay off the mortgage debt. They can sell the bank owned property even though the proceeds will likely be less than the amount owed.
If the pre foreclosure home is not reinstated by the end of the pre-foreclosure period, buyers can bid on it at the public auction. Often, the potential buyers are required to pay with cash at the auction, and they may not have much time to do essential research on the title and property’s condition beforehand. Although this is more risky than a pre foreclosure offer, a public auction often offers some of the greatest purchasing deals and saves you from the often times unpredictable and emotional factors when making a direct borrower offer.
The steps leading up to an auction of a Florida home begins when the “Lis Pendens” filed in the courts. Florida follows a court process (judicial process) for handling Florida home foreclosures. The lender is not required to notify the borrower of beginning the foreclosure process. The next step is that the courts will make a ruling. Once the ruling is made, they can auction Florida property on the sale date, which can be anywhere from 20 to 35 days later. Auctions of Florida land and property typically take place at 11:00 a.m. on sale date. To participate in an auction of a Florida home or Florida land, be sure to know all the specifics. For starters, you’ll need to pay 5% cash payment of the auction price immediately, and you’ll have the rest of that business day to pay the remaining 95%. If you don’t, you’ll lose the property.
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