Whether you are thinking about purchasing a home, land or building in the Miami-Dade area or you are already property owner, foreclosure may be a subject you would rather not have to think about. However, even when you are in good standing on your loan, it is a good idea to be aware of some fundamentals of this important term in the real estate glossary. At Cuevas and Garcia, P.A., Attorneys at Law, we often answer questions about foreclosure and provide legal advice for people who are concerned that it may be a possibility in their future.
Before signing the note on your mortgage, you probably read the contract carefully and went over the details with a lawyer to make sure you understood all the terms. According to RealtyTrac.com, one clause that you would not see on a Florida real estate contract, but that is legal in 29 states, is the power-of-sale clause. By including this clause, the trustee of the loan reserves the right to foreclose and sell the property to recover the money owed on the loan. This is known as a non-judicial foreclosure because it bypasses the court system.
Florida requires lenders to involve the legal system in a foreclosure, and auctioning foreclosed property is the responsibility of the court. If you fell behind in your mortgage payments, your lender must initiate the judicial foreclosure process by filing documents with the county court. State law provides guidelines for the actions a borrower must take to interrupt this process and keep the property. More information about property transactions is available on our web page.