Foreclosure Defense and Short Sale Attorney in Fort Lauderdale
Falling behind on a mortgage or HOA assessments is stressful, but a foreclosure filing is not the end of the road. Florida uses a court-supervised foreclosure process, which gives homeowners time and options: defending the case, negotiating with the lender, selling through a short sale, or planning an orderly exit. Joseph Hughes represents homeowners and property owners in Fort Lauderdale and throughout Broward County in foreclosure cases and short sales, and helps them understand their choices before deadlines pass.
How Foreclosure Works in Florida
Florida is a judicial foreclosure state. A lender cannot simply take a home; it must file a lawsuit in circuit court and obtain a final judgment before the property can be sold. In Broward County, residential foreclosure cases are filed in the Broward County Circuit Court. The basic stages are:
- Default and pre-foreclosure period. Under federal mortgage servicing rules, a servicer generally cannot make the first foreclosure notice or filing until the loan is more than 120 days delinquent, which gives homeowners time to apply for help.
- Lawsuit and lis pendens. The lender files a complaint and usually records a notice of lis pendens against the property. Learn more about lis pendens in Florida.
- Response deadline. In most Florida civil cases, a homeowner has 20 days after being served to respond. Missing that deadline can lead to a default.
- Judgment. If the lender proves its case, the court enters a final judgment of foreclosure that sets a sale date, generally 20 to 35 days after the judgment unless the lender agrees to a later date.
- Sale and redemption. The property is sold at a public foreclosure sale. Under section 45.0315, Florida Statutes, the owner can redeem the property by paying what is owed up until the clerk files the certificate of sale, or a later time set in the judgment.
Defending a Foreclosure Case
Every case is different, but common issues in foreclosure defense include:
- Whether the lender or servicer has standing to foreclose and can prove it holds the note;
- Whether required notices were properly sent and conditions in the mortgage were met;
- Whether the amounts claimed, including fees and charges, are accurate;
- Whether the case was filed within the 5-year statute of limitations for mortgage foreclosure in section 95.11, Florida Statutes;
- Whether the servicer followed federal loss mitigation rules after receiving a complete application for help.
Even when a full defense is not realistic, responding to the lawsuit protects your rights and can buy time to negotiate a loan modification, a short sale, or a deed in lieu of foreclosure.
Loss Mitigation and Dual Tracking Protections
Federal Regulation X protects borrowers who apply for loss mitigation. If a servicer receives a complete loss mitigation application before the first foreclosure filing, it generally cannot file until the borrower has been reviewed and either found ineligible, rejected the options offered, or failed to perform under an agreement. If a complete application is received more than 37 days before a scheduled foreclosure sale, the servicer generally cannot move for judgment or conduct the sale while the application is being evaluated. Timing matters, so submit complete applications as early as possible and keep proof of what you sent.
Short Sales in Fort Lauderdale and Broward County
A short sale is a sale of the property for less than the amount owed on the mortgage, with the lender’s approval. It can be a way to avoid a foreclosure judgment and take control of the timing of your move. A short sale involves more than a typical closing:
- Lender approval: the lender must approve the buyer’s offer and the payoff, and every lienholder on the property must agree to release its lien.
- Deficiency waiver: the most important term is whether the lender waives its right to pursue you for the remaining balance. That waiver should be clear and in writing in the approval letter.
- The contract: Florida short sales typically use a short sale addendum to the FR/BAR contract, which makes the sale contingent on lender approval.
- Taxes: forgiven mortgage debt can have income tax consequences. Talk to your CPA before you close.
Hughes Real Estate Law reviews short sale approval letters, negotiates with lienholders, and handles the closing. See also real estate closings in Fort Lauderdale and seller representation.
After the Foreclosure Sale: Deficiencies and Surplus Funds
- Deficiency judgments: if the sale does not cover the debt, the lender may seek a deficiency judgment. For a one- to four-family residence, section 95.11 generally gives the lender 1 year after the clerk issues the certificate of sale, or after the lender accepts a deed in lieu of foreclosure, to sue for the deficiency.
- Surplus funds: if the property sells for more than is owed, the surplus is generally presumed to belong to the owner of record on the date the lis pendens was filed, after subordinate lienholders who timely file claims are paid. Be cautious with companies that contact you offering to recover surplus funds for a fee.
HOA and Condo Association Foreclosures
Homeowners and condominium associations in Florida can record liens and foreclose for unpaid assessments, even when the mortgage is current. Florida’s homestead protection does not stop an association lien foreclosure. If you have received a notice of late assessments or an intent to lien, act early. See our HOA representation and defense services.
Frequently Asked Questions
| Question | Answer |
|---|---|
| How long does foreclosure take in Florida? | Because Florida foreclosures go through the courts, the timeline varies widely depending on whether the homeowner responds, whether the case is contested, and the court’s schedule. Once a final judgment is entered, the sale is generally set 20 to 35 days later. |
| Can I stop a foreclosure sale in Florida? | Options may include redeeming the property by paying what is owed before the certificate of sale is filed, reaching a loss mitigation agreement, completing a short sale, or raising defenses in the case. The right option depends on your timeline and finances. |
| Will a short sale stop the lender from coming after me? | Only if the lender agrees to waive the deficiency. Make sure the approval letter clearly states that the remaining balance is waived. |
| What should I do when I am served with a foreclosure lawsuit? | Note the date you were served, because you generally have 20 days to respond. Gather your mortgage documents and any letters from the servicer, and speak with an attorney before the deadline passes. |
Talk to a Fort Lauderdale Foreclosure and Short Sale Attorney
The earlier you get advice, the more options you have. Call Hughes Real Estate Law at (954) 256-5125 or visit our office at 1141 SE 2nd Ave, Fort Lauderdale, FL 33316 to discuss your foreclosure case or short sale.
