Orlando Bank Foreclosures Process Explained

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Market data showed that the number of Orlando bank foreclosures was among the top 10 highest in the country last month. The Orlando-Kissimmee area earned the number 8 position in the ranking of metropolitan areas across the country with the highest foreclosure rate. This means that one out of 87 homeowners received at least one foreclosure filing last month.

Industry experts believed that aside from foreclosure prevention programs, another way to help distressed homeowners save their homes from foreclosures is to educate them about the process in order for them to know what will happen next and find ways to remain in their houses.

They said that foreclosure proceedings in Florida are mostly filed in the state court. Under Florida’s law, there are two foreclosure methods. One method is similar to a lawsuit and the other is an expedited process implemented in 1993.

Under the expedited process, the lenders file verified complaints which include all information necessary to prove that they are entitled to foreclose on a distressed property. Following the filing of a complaint, the state court will issue an order to borrowers who are required to show proof why financial judgments should not be made. The show cause order carries the proposed final judgment. A judgment will be entered if borrowers failed to file a defense.

According to court records, few Orlando bank foreclosures were completed through the expedited procedure, with most complainants going through the normal civil suit process.

Under the standard foreclosure lawsuit, the lenders file a legal complaint against borrowers who defaulted on their mortgage payments. Lenders will ask the court to determine the total mortgage owed by the borrower and for the distressed property to be sold as payment for the debts.

Lenders must show proof before the court that all prerequisites for the filing of a foreclosure lawsuit have been met. The prerequisites will depend on the terms and type of the mortgage involve. They may include notices of default and debt assistance offered to borrowers which is required under federal programs.

Under the Florida law, lenders are not required to specify the prerequisites, but they must state that they have met these requirements.

The law allows borrowers an opportunity to provide defense in every stage in the foreclosure proceeding. Defenses may include legal technicalities and equitable principals.