In a state where foreclosure rates skyrocketed nearly 50 percent in 2012, the ins and outs of the state’s foreclosure laws are more relevant than ever. If you’re a lender, it’s important to know the basics of state foreclosure law in order to deal professionally with foreclosures. While nobody wants to see a homeowner fall into arrears on their home, as a lender in Florida the fact remains that you’ll most likely have to deal with a foreclosure sooner or later. There are several factors that make foreclosure in Florida different than in most states.
Lien Theory
In Florida your property acts as security for your mortgage. This means if you default on your mortgage it becomes a lawsuit that needs to go through the courts. As a lender, you must file a lawsuit with the proper court for your district, then notify the individual that a lawsuit has been initiated. A foreclosure lawsuit in the state can take up to two years, so as the lender you’ll want to keep it going as quickly as possible. This means serving the borrower with notice of the lawsuit in a quick and effective manner.
You’ve Been Served
Once served a notice by professional process servers, the borrower has 20 days to either contest the suit, file for bankruptcy, or pay up what he/she owes. In having the borrower served quickly, you’re guaranteeing a result in 20 days. If the borrower chooses to ignore the notice, then the foreclosure process begins. This is why the hiring of a professional process server is important in this process. Not only does it speech up a potentially long process, it also assures that you’ll know within 20 days where the case is likely to end up. Even in cases where the borrower may not want to be found, a professional process server will track them down and make sure that they are served.
