Begins when complaint is filed. Complaint set’s forth the plaintiff’s claim and serves asnotice that a foreclosure has been filed and anysubsequent interest is subject to the foreclosure action. Must include mortgagor/owner of the property as wellas any other party with an interest in the property.(tenants, spouses, etc) Must include junior lien holders Each party must be served.
Once served, defendants must file a response within20 days, otherwise the clerk will enter a default, andthe plaintiff will move for summary judgment. If defendant files pleading within the 20 days, theplaintiff will usually respond and eventually requestmotion for summary judgment as long as there is noissue of material fact. In majority of cases, motion for summary judgmentwill be entered based on proofs through affidavits,and only in rare instances trial on merits will benecessary.
After Final Judgment, clerk’s sale is scheduledusually 30-45 days out, judge may put outfurther. Prior to the sale, a notice of sale must bepublished for 2 consecutive weeks in anewspaper of general circulation in thecounty in which the property is located.
Conducted by the clerk. Opening Bid: Based on the full amount ofjudgment owed to lender and fees incurred. If no one bids above that amount, the foreclosinglender will take possession of the property. (REO) Sale is complete when the Clerk announces theidentity of the successful bidder and issues aCertificate of Sale.(usually happens the same dayas the sale)
10 day period after the sale in whichobjections can be filed (F.S. 45) If no objections filed, clerk will issuecertificate of title.
If property is still occupied after CT, a Writ ofPossession is issued by clerk and handdelivered to occupant. The new owner takes possession of theproperty by asking clerk for a Writ ofPossession. If property is occupied by someone not onthe writ, eviction proceedings begin.
Protects tenants in Foreclosed properties; Tenants must receive 90 days notice prior toeviction, Only apply to bona fide tenants with arm’slength lease, in writing and fair market value. Tenants must be allowed to stay in theproperty through their lease unless:1. New owner wants to occupy property as their primaryresidence;2. Month to Month tenancy
All properties sold “As Is”. Bidders responsible for conducting their ownresearch. Surviving Liens: Associations, Tax, ChildSupport, Judgments. Missed Defendants
No disclosures, warranties or representations No termination, must allow lender to repair; Difficult to Finance; Contract before certificate of title is issued; Missed defendant Delay in cleaning up title issues Deed restrictions