Undoubtedly, life is unpredictable. Sometimes, an individual may be surprised by unforeseen circumstances that generate financial distress (e.g., divorce, unemployment, etc.). When financial distress leads to mortgage debt, a foreclosure cannot be ignored.
Nonetheless, is it possible to reverse a foreclosure sale after the ownership of the property has been transferred to a third party? In this article, you will discover whether a foreclosure sale can be reversed in Florida.
Can a Foreclosure Sale be Reversed in Florida? – Feasible Answers
Many people buy homes using money borrowed from lenders (e.g., banks). However, when the owner of a property paid with a mortgage defaults the loan, the lender may attempt to recover the owed amount by seizing the property and selling it.
Mostly, a foreclosure is triggered when a borrower misses a significant number of monthly payments or fails to meet other requirements in the mortgage contract (although the latter rarely occurs).
In short, an individual who had his home foreclosed cannot have it back once the process is complete. However, up until the actual sale is over, it is possible to recover the house by “redeeming” it.
How to Redeem a Home During Foreclosure in Florida – As Provided by Law
To redeem property during foreclosure, the owner must pay off the owed amount in the unpaid loan before the court clerk files the certificate of sale or within the period specified in the foreclosure judgment.
In Florida, foreclosures are judicial. Hence, a lender must file a lawsuit to ask the court to determine a foreclosure. Florida Statutes §45.031 (4) provide that “after a sale of the property the clerk shall promptly file a certificate of sale and serve a copy of it on each party (…).”
This way, a court clerk usually files the certificate of sale within one day of the sale, after the foreclosure has already happened. So, until the court clerk proceeds to file the certificate of sale, there is still time to save the property.
As provided by Florida Statutes §45.0315, the right of redemption may take place “at any time before the later of the filing of a certificate of sale by the clerk of the court or the time specified in the judgment, order, or decree of foreclosure (…).”
This way, “the mortgagor (the borrower in a mortgage) or the holder of any subordinate interest may cure the mortgagor’s indebtedness and prevent a foreclosure sale by paying the amount of money specified in the judgment, order, or decree of foreclosure.”
In layman’s terms, the message is the defaulting borrower has a small chance of redeeming the home within a limited period. If this chance is taken for granted, there is no way to get the property back.
How to Redeem a Home During Foreclosure in Florida – How Much Do I Have to Pay?
Florida Statutes §45.0315 provides the defaulting borrower must pay the entire amount owed to the lender as stated in the judgment, order, or decree.
Additionally, it may include “any amounts due because of the exercise of a right to accelerate, plus the reasonable expenses of proceeding to foreclosure incurred to the time of tender, including reasonable attorney’s fees of the creditor.”
Avoiding foreclosure is a complex task, so make sure to work with an expert foreclosure attorney in Florida to ensure you will pay only the amount due.
Can a Foreclosure Sale be Reversed in Florida? – Yes, But Only If You Act Immediately!
You cannot wait until the bank forecloses your home to get off the couch and save it. Every second counts, so waste no time with uncertainty. Call Attorney Romy B. Jurado today at (305) 921-0976 or send an email to [email protected] to schedule a consultation.