What is Foreclosure
Foreclosure is the elimination of all rights of the homeowner covered by a mortgage and a process in which the homeowner’s property becomes the absolute ownership of the lending institution. Foreclosure filings are increasing; approximately 4.8 million of homes nationwide are facing foreclosure. Estimates suggest another 7.3 million Americans defaulted on their loans between 2009-2010, 1.2 million in Florida.
Florida is the third leading state in the United States in Foreclosure filings. The Foreclosure process begins when the homeowner fails to make mortgage payments. This could be for to several reasons: unemployment, medical expenses, divorce, adjustable rate resets, increased real estate taxes, death and more.
Legal proceedings begin with a formal demand for payment which is a letter issued from the lender. This letter is referred to as a Notice of Default or Acceleration Letter. Usually the lender will send this notice when the borrower has been 3 months delinquent on the mortgage payments. This notice is a threat to terminate all your rights in that property, sell the property, and evict you from the premises.