Florida Foreclosure Process

• Foreclosures follow a judicial process in Florida. Banks can foreclosure on the property in 180 days from your first missed payment; however, the process can take longer given Florida's high number of foreclosure cases. Florida allows a borrower the right of redemption, a period of 10 days when he can challenge the foreclosure. During this time, the court reviews the sale to ensure the property sold at a fair price. If unconfirmed, the court orders another foreclosure sale. Florida law allows banks to seek a deficiency judgment for the remaining balance after a foreclosure sale.
  
  

Mediation

• Due to the high volume of foreclosure requests, the Florida Supreme Court orders mandatory mediation, a process that involves a court-appointed mediator bringing borrowers and lenders to a meeting to foster better communication. Prior to mediation, a borrower must attend foreclosure counseling. If a borrower is interested in a loan modification, he must bring all relevant financial documents at mediation. If both parties cannot come to terms, the bank can continue the foreclosure process.
  
  

Chapter 13

• Chapter 13 of the U.S. Bankruptcy Code reorganizes your debt with creditors. Some mortgage experts advise homeowners to file Chapter 13 to forestall the foreclosure process because doing so gives you an automatic stay of protection. When you file Chapter 13, you must sit down with the bank to develop a repayment plan, which lets you spread out your late and unpaid payments over several years. Chapter 13 is a viable option if you are sincere about saving your home; however, you must stick with the agreement that you iron out with the bank.
  
  

Short Sale

• If you are facing foreclosure and you don't foresee a way to save your home even with a Chapter 13 debt adjustment, you can do a short sale. A short sale involves selling your home for less than what you owe on your mortgage. A preemptive short sale may get you more money for your home, which reduces your liability to the bank. Unfortunately, the bank must approve the short sale, and if it does, it has the right to pursue a deficiency judgment.