New Florida Foreclosure Law allows bank to accelerate foreclosure filings!

As you may know, a new Florida Foreclosure Law has been signed by the governor What this means for homeowners has some both good and bad implications for you – the home owner. This new foreclosure law significantly speeds up the process by which HOA’s and banks can foreclose on your property. If a lawsuit is not properly defended, it can do so in as little as 45 days. Thats right, 45 days!

Wait, an HOA can foreclose on me under the new foreclosure law?

Yes, you read that right. In Florida, any unpaid HOA fees can turn into a lien on your property. In Florida, an HOA can foreclose on that lien and your home. The new law actually now gives the HOA’s access to an accelerated process. If you do not defend the lawsuit and a show cause order has been issued, the HOA can get a final judgment at that hearing.

This dramatically shifts the timetable in a foreclosure case. Generally, after being served with a complaint, and an answer is filed, discovery is requested. Discovery asks for several things – including original documents – that can take some time for the bank or HOA to gather. This is done to ensure that the party suing you (the plaintiff) has the proper standing to bring their lawsuit and obtain a final judgment.

How is this a bad thing?

Most people are unaware that an HOA can foreclose on their property. Under the new Florida Foreclosure law, they can now do it even faster than before. This is bad in two ways: one, if your house gets foreclosed on by an HOA, you lose the most important asset in a bank foreclosure – your home. This severely limits what you can do in mitigating a bank’s foreclosure and may render certain loss mitigation options impossible. Second, if you are foreclosed on under the new accelerated foreclosure statute, you could be looking at having to rent a new property, put down the security deposits and uproot your life, in as little as 45 days.

If you have been with a Show Cause order, time is of the essence. Any foreclosure under Florida Statute 702.10 could have significant impacts on your future. If you have been served in foreclosure and see that there is a show-cause order, call my office today to set up a free consultation at 813.502.6768!