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Foreclosure is a legal process by which a lender or mortgage servicer seizes and sells a borrower’s property to recover the outstanding balance of a mortgage loan. Unfortunately, in some cases, a foreclosure may be wrongful – the lender may have violated the borrower’s legal rights in the foreclosure process.
Wrongful foreclosure can occur when a lender or mortgage servicer fails to follow the legal requirements for foreclosure. This can include failing to provide proper notice, violating state laws and regulations, or engaging in abusive or deceptive practices.
Wrongful foreclosure in Florida can have serious consequences for the borrower, including losing their home and damaging their credit score. If you believe you have been wrongfully foreclosed in the state, seeking legal advice from a Florida wrongful foreclosure lawyer is essential.
Florida’s Foreclosure Process
The foreclosure process in Florida is governed by both state and federal laws. And it is a judicial process, so it must go through the court system. The following are the steps in the foreclosure process in Florida:
1. Notice of Default
The first step in the foreclosure process is the notice of default. This is a formal letter from the lender or mortgage servicer notifying the borrower that they are defaulting on their mortgage payments.
2. Foreclosure Lawsuit
If the borrower does not make the necessary financial amends, the lender or mortgage servicer can file a foreclosure lawsuit in court. The lawsuit will typically include a complaint, which outlines the legal basis for the foreclosure, and a summons, which notifies the borrower that they are being sued.
3. Response
The borrower has 20 days from the date of service of the summons to file a response with the court. If the borrower does not file a response, the court may enter a default judgment against them.
4. Mediation
In some cases, the court may order the parties to attend mediation to try to reach a resolution that is in the borrower’s best interest.
5. Judgment
If the court determines that the foreclosure is legal, it will enter a judgment of foreclosure. This allows the lender or mortgage servicer to sell the property at a public auction.
6. Sale
The lender conducts a public auction and sells the property to the highest bidder. If the amount they receive is less than the amount the borrower owes on the mortgage, the borrower may be liable for the deficiency.
Common Causes of Wrongful Foreclosure in Florida
In all of the following cases, it is essential to seek the advice of a wrongful foreclosure lawyer in Florida. A lawyer can help you understand your legal rights and options for recourse, and they can represent you in court if necessary.
1. Failure to Provide a Proper Notice
In Florida, lenders and mortgage servicers must provide borrowers with notice of default and a right to cure before initiating foreclosure proceedings. Failure to do so can result in a wrongful foreclosure.
2. Violation of State and Federal Laws
When initiating foreclosure proceedings, lenders and mortgage servicers must comply with state and federal laws and regulations. Violation of these laws can result in wrongful foreclosure.
3. Abusive or Deceptive Practice
Lenders and mortgage servicers may engage in deceptive practices during the foreclosure process, such as misrepresenting the amount owed and failing to apply for payments properly. Lenders may also practice dual-tracking, which is when the lender or mortgage servicer initiates foreclosure proceedings while the borrower is still in the process of seeking a loan modification. All such practices make for wrongful foreclosure.
4. Unfair Treatment
Some borrowers may believe they were unfairly treated during the foreclosure process, such as being denied a loan modification or being subject to excessive fees.
5. Robo-Signing
The responsibility for implementing and enforcing proper foreclosure procedures lies with the mortgage companies and their employees. Robo-signing involves employees of mortgage companies signing off on large volumes of foreclosure documents without properly reviewing them or ensuring their accuracy.
This is done to speed up the foreclosure process and to save time and money. The practice was widespread during the foreclosure crisis in the late 2000s and early 2010s. However, it is in violation of various state and federal laws, as it results in wrongful foreclosures.
6. Mortgage Servicing Errors
Mortgage servicing errors, such as failing to credit payments properly or charging excessive fees, result in a wrongful foreclosure.
Endnote
Wrongful foreclosure can have severe consequences for borrowers. If you believe that you have been wrongfully foreclosed upon, it’s essential to seek legal advice from an experienced wrongful foreclosure lawyer. A lawyer can help protect your legal rights and seek a resolution in your best interest. They can provide you with legal expertise and guidance throughout the process and ensure that your rights are protected.
