REO & Auctions


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I created this power point for the ORRA (Orlando Regional Realtor Association) Lay Symposium on September 9, 2012.

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REO & Auctions

  1. 1. FinancialsComplaint/LisPendensContractMSJNegotiationsFJClosingFC SALEShort SaleForeclosureFINISH
  2. 2. Complaint/Lis PendensMotionForSummaryJudgmentFinalJudgmentForeclosureSaleAuctionREO/BankOwned
  3. 3.  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.
  4. 4.  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.
  5. 5.  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.
  6. 6.  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)
  7. 7.  10 day period after the sale in whichobjections can be filed (F.S. 45) If no objections filed, clerk will issuecertificate of title.
  8. 8.  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.
  9. 9.  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
  10. 10.  All properties sold “As Is”. Bidders responsible for conducting their ownresearch. Surviving Liens: Associations, Tax, ChildSupport, Judgments. Missed Defendants
  11. 11.  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