How does a Florida Foreclosure Auction Work?

It is estimated that foreclosures in Florida increased over 200% in 2008. In fact that number is expected to rise again as this year goes on. Unfortunately, people are forced to lose their homes in this economic crisis. Florida foreclosures and foreclosure auctions are on the rise, but how do they happen? Wat happens when a bank is forced to foreclose on the property? What happens at an auction?

Florida’s rules on auctions are of the judicial nature. This means that the lender must file a lawsuit against the homeowner within a judicial system. The homeowner than has a specified period of time to respond to the action.

They can either pay their back mortgage or try to fight the foreclosure. However, if there is no answer within a certain amount of time, the court will render a judgment against the homeowner and the lender will take control of the home. Once this happens an auction date will be set.

Before a Florida foreclosure auction takes place the lender must publish a Notice of Sale for three consecutive weeks with the last notice not less than 5 days before the Florida foreclosure auction. For a person wanting to buy the foreclosed home, they only have a certain amount of time to make sure they have the necessary means to purchase the home at auction.

If you are looking to buy a home at a Florida foreclosure, you have a little bit of work to do before the day of the auction. Make sure your finances are in good order and you will have enough in your bank account to cover at least the 5% deposit if you are the winning bidder.

The day of the Florida foreclosure auction takes place thirty days after the judgment at the courthouse. They take place at the County Clerk’s office at 11 A.M. Once the winning bidder is announced they are required to place 5% of the purchase price down.

The total purchase price of the winning bid of a Florida foreclosure auction must be paid before the end of the day, unless other arrangements have been made. Once the total payment has been paid they will then issue a Certification of Sale to the new homeowner.

Buying a home at a Florida foreclosure auction isn’t a hard thing to do, but you must make sure you have the funds to cover your bid, and know the value of the home is comparable to others in the area.