Selling Your Florida Home After Foreclosure: Understanding the Process

Foreclosure is one of the most stressful processes a homeowner can go through. If you’re facing foreclosure, you may be able to take steps to minimize negative consequences. Understanding the foreclosure process in Florida is a good place to start.

If you’re considering selling your home after foreclosure or just need help navigating the foreclosure process, you need an experienced real estate attorney. At The Law Office of Carlos M. Amor, P.A., we are here for you. 

Understanding the Foreclosure Process in Florida

Fortunately for homeowners, foreclosure doesn’t happen overnight. Before your home is foreclosed on, the following steps must be taken:

• Receiving the Notice of Default: The lender tells you that you have defaulted on your mortgage.
• Initiating the Lawsuit: The lender files a lawsuit against you.
• Notifying You of the Lawsuit: You receive a copy of the lawsuit and a court summons.
• Responding to the Lawsuit: You have 20 days to file a response to the lawsuit.

If you don’t respond to the lawsuit, the lender may win by default. Typically, a lender will ask for a summary judgment. This is where the court rules in their favor and orders a foreclosure sale. If you have defenses against the foreclosure, your case might be decided at trial.

Post-Foreclosure Redemption Period

In Florida, you may be able to “redeem” your home after the sale. This means that if you pay the full amount of the winning bid, you may buy your house back. However, you typically only have until the Clerk of Court files a certificate of sale.

Deficiency Judgment

If your home is sold in a foreclosure sale and you don’t buy it back, you might think you’re off the hook for any future payment. Unfortunately, that isn’t always the case. Sometimes, the winning bid isn’t enough to cover how much you owe on the loan. In this situation, you still owe the lender the difference between what you owed on the mortgage and the final sale price of the house. The lender will likely get a deficiency judgment against you. This is a court order allowing the lender to collect the amount from you.

Can You Sell Your Home After Foreclosure?

Many homeowners mistakenly believe that once the foreclosure process has begun, they may not sell. However, Florida homeowners may still sell their homes after the lender has started the foreclosure process (but before the foreclosure sale). There are several advantages to doing so:

• You’ll suffer less credit damage than you would with foreclosure.
• You may reduce your risk of a deficiency judgment.
• You may be able to recover some of the equity in your home.
• You have more overall control over the sale.

If you decide to sell your home after foreclosure, you may need to notify your lender. Given the complexities involved with pre-foreclosure sales, it’s incredibly important that you work with a real estate lawyer. Your attorney can help you make the most financially advantageous sale decision and avoid accidentally violating disclosure laws.

Are you facing foreclosure? Call now at 954-453-7200 for a free consultation.

Options for Selling After Foreclosure

If you do choose to sell your home after the foreclosure process has started, there are several options you can choose from:

Working With a Real Estate Agent

If you want to maximize your home’s sale price, working with a real estate agent is the best course of action. However, you should start the process as early as possible. The longer your agent has to stage your home and show it to potential buyers, the more likely you are to get a fair price.

Selling to an Investor

If your home is distressed or needs major repairs, selling to an investor may be a good option. Many investors prefer to focus on properties that need work. If you find an interested buyer, the sale will likely go relatively quickly.

Negotiating a Short Sale

In a short sale, the lender lets you sell the house for less than you owe on the mortgage. They will also often forgive the remaining loan balance. However, short sales are generally reserved for homeowners who can prove that they’re no longer able to afford their house. Selling a home this way often does not damage your credit quite as much as a foreclosure sale.

Protecting Your Rights After Foreclosure

Minimizing Damage to Your Finances and Future

If you’re facing foreclosure, you have more concerns than just selling your home. When you understand your rights as a consumer and have a plan for restoring your credit, you can minimize the damage the foreclosure does to your life.

Negotiating Deficiency Judgments

If the lender says you owe money after the sale, you don’t have to simply accept that amount. You may be able to challenge the judgment by presenting evidence that the lender incorrectly valued the home. You also may be able to negotiate the amount down. In either case, your chances of success dramatically increase when you work with an attorney.

Rebuilding Credit

A foreclosure can lower your credit score by 100 points or more. One of the best ways to start rebuilding your credit is by ensuring you have a consistent history of on-time payments. If you have credit cards, make sure you’re using less than 30% (ideally, less than 10%) of your total credit limit.

Why Choose The Law Office of Carlos M. Amor, P.A.?

The foreclosure process can be especially difficult to navigate — and selling your home after foreclosure is often an even greater challenge. This situation is never ideal, but the right legal representation may be able to minimize the negative impact on your credit and your future. When you choose The Law Office of Carlos M. Amor, P.A., you gain a powerful ally and a committed advocate. Mr. Amor’s law practice is focused on real estate law, and he has helped clients get through foreclosure and its aftermath for more than 15 years. He is an experienced negotiator who can advocate for you when working with lenders and potential buyers.

Selling After Foreclosure Is Possible

The Right Attorney Makes All the Difference

Selling your home after a foreclosure may be challenging — but with the right strategy, it’s entirely possible. Mr. Amor is ready to put his legal experience to work for you.

If you’re facing foreclosure, call The Law Office of Carlos M. Amor, P.A., at 954-453-7200, or get in touch online to book your free consultation.