Selling a house in foreclosure in Florida: the court steps and the last day to sell

How a Florida foreclosure moves

Florida lenders foreclose through the circuit court. The lender files a lawsuit, the homeowner is served, the court enters a final judgment, and the county clerk sells the house at a public auction. Section 45.031(10) lets the clerk run the auction online.

Until the auction ends and the clerk files the certificate of sale, you still own the house. That means you can still sell it. This guide explains the steps in order, the dates that matter and how a sale pays the lender. It gives no legal advice, so speak with a Florida lawyer or a HUD-approved housing counselor about your own case.

Before the lawsuit: the federal rules on a main home

For a loan on your main home, 12 CFR 1024.39 asks the servicer to try to reach you live by the 36th day of a missed payment, and to send a written notice about help by the 45th day. Under 12 CFR 1024.41(f), the servicer generally cannot make the first foreclosure notice or filing until the loan is more than 120 days behind.

Those four months are the best time to decide. You can apply for help, such as a repayment plan or a loan change, or you can sell while you still have every choice open. A loan on a rental house or a second home falls outside these rules.

Behind on mortgage payments →

Asking the lender for help during the case

You can apply for help even after the lawsuit is filed. Under 12 CFR 1024.41(g), when the servicer gets a complete application more than 37 days before a sale, it generally cannot ask for a judgment or hold the sale until it decides, under the conditions the rule lists. If the application arrives more than 37 days before the sale, the servicer must decide within 30 days and send its answer in writing.

Send every page the servicer asks for, keep copies, and write down the date you sent each one. A sale and an application can run at the same time.

The judgment and the sale date

When the court enters a final judgment, section 45.031(1)(a) says the sale is set for a day not less than 20 days or more than 35 days after the judgment. A later date is allowed if the lender consents. Notice of the sale runs on a public website for at least two weeks before the sale, or in a county newspaper once a week for two weeks.

Each county clerk lists its foreclosure sales on its own website. Look up your case number there and write down the sale date. That date sets how fast your sale has to close.

Your right to pay and stop the sale

Florida Statutes section 45.0315 lets the owner, or the holder of a second mortgage or other junior interest, pay the debt and stop the sale. If there is a judgment, you pay the amount in the judgment. If there is none yet, you pay everything due under the loan, including amounts the lender made due early, plus its foreclosure costs and attorney fees up to that date.

The right lasts until the later of the clerk filing the certificate of sale or the time set in the judgment. After that, the statute says there is no right of redemption. The clerk files the certificate after the auction, so plan for your sale to close before the sale date.

Selling before the auction

A sale before the auction works like any other sale, on a shorter clock. The title company asks the lender for a payoff letter, which states the exact amount due on the closing day, including the fees in the judgment. At closing, it pays the lender from the sale, which stops the foreclosure sale, and you receive what is left.

Tell the buyer the sale date on the first call. A buyer with a loan needs time for an appraisal and approval, which may not fit before the sale. A cash buyer can close in days once the title is clear. Give the title company your case number, so it can order the payoff the same day.

The first mortgage may not be the only debt on the house. If there is a second mortgage, a home equity line, a code lien or HOA dues that are behind, the title company asks each holder for its own payoff. All of them are paid from the sale before the buyer gets clear title, so list every one you know about.

• The case number and the sale date
• The lender's name and your loan number
• Any second mortgage, home equity line or lien
• HOA or condo dues that are behind
• The name of the lawyer for the lender, from the court papers

If the house is worth less than you owe

When the sale price cannot cover the loan, a normal sale cannot close without the lender's written approval of a short sale. Florida also lets a lender ask the court for the difference after a foreclosure, called a deficiency. The guide on short sales explains how the approval and the deficiency work.

Short sale or deed in lieu →

What happens to extra money after an auction

If the auction brings more than the judgment and the costs, the extra money is called surplus. Section 45.032 says the owner of record on the date the lender filed its notice of the lawsuit is presumed to be entitled to it, after junior lien holders who filed claims in time are paid. Surplus that is not paid out within 1 year is reported and sent to the state as unclaimed.

The statute's claim form says the owner is not required to have a lawyer and does not have to sign their rights over to anyone to claim it. Read that form before you sign any offer to claim the surplus for a share of it. A sale before the auction pays you your equity at closing, with no surplus claim to file.

Warning signs of a foreclosure scam

The Federal Trade Commission warns that scammers ask for money upfront, tell owners to pay them instead of the lender, tell owners to stop talking to the lender, and try to get owners to sign over the deed. Its words: "If you transfer the deed, you're not likely to get it back." A real buyer pays through a licensed title company at closing, and you sign the deed only at closing.

HUD-approved housing counselors give advice on foreclosure, often at little or no cost. The Consumer Financial Protection Bureau lists them by ZIP code.

How to check a cash buyer →

Selling to BIMINIO before a Florida sale date

BIMINIO buys houses in foreclosure in Tampa, Miami, Orlando and Lakeland, as is. You get a text within a minute, a call within the hour and a written cash offer within 24 hours, with the comparable sales we used and proof of funds. You pick a closing date from 7 to 35 days out, and we pay the closing costs. A cash offer is below full market value.

If your sale date is close, say so on the first call. The title company needs the payoff letter and a clear title before it can close, and liens or missing papers can take longer.

Behind on payments or facing foreclosure →