Many people don’t understand how foreclosures work. Foreclosure is a process with four phases.

1. Default – You must miss a payment or more likely several payments to be in default. You may also enter the foreclosure process if you miss payments to a local taxing authority, a condo association or a homeowners association.
2. Legal Notice – The lender or foreclosing party must notify the owner that they are entering into the foreclosure process. In Florida they file a Notice of Lis Pendens. The owner will be personally served with the document and/or the foreclosure will be published in accordance with the local statutes.
3. Bank Sale or Auction Date – In Florida a Judgment of Foreclosure is filed that sets a sale date. The full amount due including penalties will be listed in the Judgment. On the sale date the property will be sold at the County Courthouse.
4. Redemption Period – The redemption period is the time during which the homeowner may present payment and regain possession of the property. After the sale in Florida, the Certificate of Title can be issued after 10 calendar days.

There are 9 solutions to Foreclosure that I will discuss in my upcoming blog. Call a CDPE (Certified Distressed Property Expert) in your area to discuss ways to prevent your property from foreclosing.