Florida Foreclosure Law: How to Get Your Home Back Even After It’s Sold at Auction

Stopping foreclosure is no easy process – no matter where you live. But, there are options – even if it’s been sold at auction. These laws are known as right of redemption laws. Not all states have them and of those that do, they are applied differently.

Following is an in-depth overview of Florida’s right of redemption laws and how they can help you prevent foreclosure and/or get your home back even if it’s been sold.

Before we get into the particulars of this Florida’s foreclosure law, let’s first cover the right of redemption law from a general standpoint.

Mortgage Foreclosure Law: What is a Right of Redemption?

When a home is foreclosed on by a lender, there’s a window of time a homeowner has to purchase the home back. This window of time is called the “right of redemption.” And, a property owner can exercise this right – even if the property has already been sold at auction, for example.

But, that’s about the only similarity these laws have in common. Where they differ from state to state (in jurisdictions that have right of redemption laws) is in how long the right of redemption period is and a host of other factors.

Now that you know what right of redemption laws are, let’s discuss Florida’s right of redemption law so you can gain a better understanding about how you may be able to prevent foreclosure and/or get your home back even if it’s been sold.

Florida Foreclosure Law: The Foreclosure Process

To understand how you may be able to get your home back using right of redemption laws in Florida, the first thing you must understand is how the foreclosure process works in Florida.

There are basically two types of foreclosure in the U.S. – Judicial Foreclosure and Non-Judicial Foreclosure. Following is an explanation of the two.

Stop Foreclosure Advice: The Difference between a Judicial and a Non-Judicial Foreclosure

When you take get a home loan, you, of course, sign papers promising to repay the loan. Depending on which state you reside in, these papers are called either a “deed of trust (aka trustee’s deed)” or a “mortgage.” While most of us refer them as “mortgage papers”, there is a difference legally that affects the home foreclosure process.

What’s this difference?

A mortgage involves two parties – the borrower and the lender. If you live in a mortgage state, if you don’t pay your mortgage, your lender has the legal right to foreclose on the property and sell it to recoup what is owed on it. In order to do this, however, the lender must go to court. This is what’s known as a judicial foreclosure (because it involves the judicial system).

A deed of trust, on the other hand, involves three parties. In you live in a deed of trust state, the lender does not have to go to court to start the foreclosure process. And, that’s what makes it a non-judicial foreclosure.

Lenders like non-judicial foreclosures for the obvious reasons – the process tends to be quicker and easier, not to mention less expensive.

How Do Right of Redemption Laws in Florida Help Homeowners Stop Foreclosure

In Florida, the right of redemption law is a little less forthright compared to other states. For example, there’s usually a defined window of time in which a homeowner can buy their home back after it’s sold. This time period in the vast majority of states is in the 6-12 month range.

In Florida though, you may have as little as a day because after the Certificate of Sale for a property is issued, there is no more right of redemption. In short, Florida’s foreclosure law as it relates to right of redemption is this: The homeowner can buy his/her property back any time before the day of the sale.

HOWEVER, a caveat that gives a homeowner a “right of redemption” period is this . . . a court is allowed to “review the sale” to ensure that a fair price was paid for the property.” There is no definitive set time period written into law, but it usually takes about 10 days according to real estate experts.

Somewhat ironically, this is about the amount of time it takes for a certificate of sale to be filed and for a title clearance to take place.

In simple terms, what this means is that you really don’t have a right of redemption in Florida unless you can prove that something went wrong or was shady with the foreclosure process itself.

Deficiency Judgments in Florida: Can a Lender Sue You If Your Home Sells for Less Than Is Owed?

Yes, a lender can come after you for the balance if your home sells for less than is owed on the mortgage. However, there are several ways around this. For example, if you do a short sale with no recourse (this italicized part is very important). What this means is that the lender has agreed NOT to come after you for the balance. Nowadays, this is very common by the way.

Stop Foreclosure in Florida: What Do I Need to Do to Get My Home Back Using the Right of Redemption?

If you want to exercise your right of redemption in Florida to get your home back, you must pay off all that is owed in full up to and including – balance due on home loan, all penalties, all arrears, property taxes, attorney fees, HOA fees, property insurance and any other fees incurred by the lender.

How Long Does the Home Foreclosure Process Take in Florida?

According to experts, it can take anywhere from five to more than six months. It may be longer in today’s foreclosure-ridden market though. And if you contest the process (especially by declaring bankruptcy to avoid foreclosure), it can take even longer than that.

Get a state by state breakdown of how long the foreclosure process takes.

Read More in the Foreclosure Business News Series on Right of Redemption Laws

Here are 7 things you should know about right of redemption laws.

Alabama Foreclosure Law: The Right of Redemption

California Foreclosure Law: The Right of Redemption

Foreclosure Cleaning: An Evergreen Small Business Opportunity

Many savvy entrepreneurs are capitalizing on the home foreclosure crisis in Florida by starting foreclosure clean up businesses.

And no wonder, it’s the type of real-estate services business that thrives no matter what the real estate market is doing. Why? Because as long as real estate is bought and sold, it will need to be cleaned and maintained (eg, grass cut, locks changed, windows boarded up, etc.).

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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.