Lien Theory
- Florida foreclosure law is shaped by the lien theory concept. This theory holds that property that is bound by a mortgage contract is considered collateral until the contract is fulfilled. The property is owned by the borrower, and the contract simply represents a lien on the property.
Judicial Foreclosure
- Florida recognizes the judicial foreclosure process. This process requires the lending agent to sue the borrower for lack of payment. The purpose of this order is to obtain a court order to foreclose on the property. This foreclosure order must specify the terms of the sale, including any advertisements, location and any other requirements. Any advertisement requirements are the responsibility of the lender. The court also has the right to set aside the foreclosure order up until the sale is completed. When the order is set aside, for the purpose of the court, it becomes as if the foreclosure lawsuit had never been filed.
Right of Redemption
- Right of redemption gives a borrower the ability to reclaim the property after the sale has been completed by paying the full value of the loan, plus the costs of the foreclosure proceedings. In Florida, the former borrower has 10 days after the completion of the sale to redeem the property.
Deficiency
- A deficiency occurs when the sale of the property yields less than the balance that was due on the loan. When this happens, the state of Florida allows the lender to pursue a judgment requiring the former borrower to pay the difference. If the mortgage process is uncontested, the lender waives the right to pursue a deficiency judgment.
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