Apr
10
Life after Foreclosure
Posted by Dan O' Meara under For Buyers, For Sellers, General Information
Foreclosure: A foreclosure action is a lawsuit wherin a mortgage holder is asking the court to establish the amount of Mortgage (loan balance), and if the loan amount is not paid, the court directs the Clerk of Court to auction the real estate. The foreclosure action is not an action on the promissory note. The amount owed under the Note is the amount of the Mortgage.
A Lis Pendens is filed when the foreclosure is filed (which means a pending action against the real property). The foreclosure is an action to recover the real estate which is secured by a mortgage rather than to recover a money judgment on the Prommissory Note.
The mortgage foreclosure complaint is served (delivered to the borrower) by processor server or Sheriff’s Department and gives the borrower, or owner of the property, twenty (20) days in which to file a response. If the borrower does not file a response with the court (answer), a default is entered which deems all the allegations of the complaint are admitted. The next step in the mortgage foreclosure action is usually a Motion for Summary Judgment filed by the lenders attorney. At the hearing on the Motion, the court determines the amount of the mortgage. The amount owed will include principal, interest, unpaid taxes, unpaid insurance, late charges, attorney fees and court costs. The court enters a final Judgment for the total sum that is owed and directs the property be sold on the courthouse steps and sets a sale date in appoximately thrity-five (35) days from the date of the Summary Judgement hearing. In order to contest a Motion for Summary Judgment, the borrower must file an Affidavit contesting the facts set forth in the Complaint. If a borrower wishes to contest the Motion for Summary Judgment, the borrower should hire an attorney since the proceedings must follow the Rules of Civil Procedure and does not allow foe testimony at the hearing.
The Pasco County Clerk of the Court conducts foreclosure sales 2-3 times per week. The sale is an auction, and the lender has a credit to bid up to the total amount of the jugment that was entered by the court. Many times the lender will “bid in” the property for $100 . The lender can bid up to the full amount of their judgment which is more than the property is worth.
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