When a homeowner defaults mortgage payments, his/her lender may attempt to get the property foreclosed. In Florida, a lender cannot foreclose a property without judicial approval.
This way, a lender must file a claim in court before proceeding with a foreclosure. In such cases, homeowners usually get stressed and do not know how to evaluate the existing solutions.
Yet, although it may be complicated, it is still possible to redeem a property before or after the foreclosure sale. Keep reading to discover Florida’s redemption period after foreclosure.
Avoiding Foreclosure in Florida – Possible Defenses During Pre-Foreclosure Phase
Florida Statutes §45.031(4) provides 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 (…).” However, up until the clerk files the certificate of sale, a homeowner can save his/her home from foreclosure.
As homeowners amid a foreclosure process have the equitable right to redeem their properties, they can keep their homes by paying off the total owed amount in the mortgage. Plus, it may also include the associated costs (e.g., attorney’s fees of the creditor).
If you opt for this solution, the ideal approach would be getting the lender to issue a payoff statement.
In a payoff statement, the lender provides details about the specific amount owed in the mortgage, as well as any other costs such as late fees, property inspections, and other fees incurred during the process.
Once the homeowner has gathered sufficient funds to pay the total owed amount, it is possible to redeem the property up until the clerk proceeds to file the certificate of sale – which usually happens one day after the sale is complete.
It is crucial noting that it may be extremely hard to work your way through this process without professional guidance, especially when handling the documentation and conforming to the strict time frame required.
In case paying off the full amount owed is not possible, you can still work with an expert attorney to pursue alternative solutions such as convincing the lender to accept a loan modification or filing for Chapter 13 bankruptcy.
Does Florida Have a Redemption Period After Foreclosure? – A Realistic Overview
In Florida, there is the statutory right of redemption for homeowners who had their properties foreclosed. After a foreclosure sale, the original owner of a property may redeem it and reimburse the buyer – as long as the clerk does not file the certificate of sale.
Florida Statutes §45.0315 provide that a homeowner has the right to redeem a property “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.”
If the clerk has already filed the certificate of sale, the homeowner has the option to buy back the property. To do so, the original owner of the property must pay the foreclosure sale price.
In some cases, the total costs may also include the outstanding mortgage payments plus all interest accrued during the process. Florida residents have a 10-day redemption period to buy back a property after a foreclosure sale is complete.
It is fundamental to understand that the purpose behind Florida’s statutory redemption period is to guarantee that foreclosed properties are sold at a fair price. Consequently, it would avoid the owner of a foreclosed property from buying it back at a lower price and taking advantage of the process.
Do You Want to Reclaim a Foreclosed Property in Florida? – Do Not Waste a Second!
Florida law provides a strict 10-day redemption period for homeowners interested in buying back their foreclosed properties. If that is your case, waste no time – call Attorney Romy B. Jurado at (305) 921-0440 or send an email to Romy@jflawfirm.com, so we can get to work immediately.