Mortgage Foreclosure: Know Your Rights & the Legal Process
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Owning a home in Miami-Dade County is getting harder, especially for seniors and people with lower incomes. Costs like property taxes, property insurance, and home repairs keep going up. Insurance companies also want homes to be ready for hurricanes, which means paying for big-ticket items, like new roofs and windows. These expenses add up fast. Some reports say average insurance premiums in Miami-Dade have risen 72% in the past five years. For homeowners with mortgages, that means higher monthly payments for loan amount, insurance, and taxes. For seniors on fixed incomes and lower-wage workers, this can lead to missed mortgage payments and loss of their home through foreclosure.
What Happens in a Foreclosure
If a homeowner falls behind on their mortgage payments, the lender should notify them about the missed payments. If the homeowner can’t get a repayment plan or refinance, the lender can file a foreclosure lawsuit against the homeowner in state court. The homeowner will have 20 days after being personally served to file an answer and defenses to the lawsuit. In Florida, a judge hears and decides foreclosure cases. The court may order the lender and homeowner to go to mediation to try to settle the case.
If the court enters a Final Judgment against the homeowner, the court clerk will be told to sell the house to the highest bidder at a public auction. The sale date is usually within a couple of months of the judgment. The homeowner has the right to save their home before the sale by “redeeming” it—paying the full judgment amount, plus interest and attorneys’ fees. Some homeowners may be able to stop the sale and repay what they owe over five years by filing Chapter 13 bankruptcy.
If the house is sold and there are no objections, the Clerk issues a Certificate of Title to the highest auction bidder 10 days later. They become the new owner. If there is any money left from the sale after all payments owed by the final judgment are paid, the former homeowner can request the Clerk to give them those leftover funds.
Legal Services of Greater Miami (Legal Services) helps low-income people who are facing foreclosure on regular or reverse mortgages or being sued by condo or homeowners’ associations for unpaid dues or assessments. The organization’s assistance is free and could include negotiating repayment plans or representation in the foreclosure lawsuit. Legal Services also helps homeowners who qualify to file Chapter 13 bankruptcy to save their house by repaying the money owed over time. Homeowners can apply online for free legal services at www.legalservicesmiami.org or call the office at 305-576-0080.
