Mortgage Lenders’ Notice Requirements Before Foreclosure

Last updated on: July 3, 2023

When a mortgage borrower is facing foreclosure, there are certain steps the mortgage lender has to take in order to begin the foreclosure process. These steps are usually outlined in the mortgage documents a borrower signs when taking on the mortgage. In some foreclosure cases, the mortgage lenders do not follow the outlined steps, which sometimes cause the mortgage borrower to suffer by losing some legal rights. However, in some cases, the mortgage lender’s failure to follow requirements of a legal contract before starting the foreclosure process can be used as a defense to the foreclosure by the mortgage borrower.

An experienced Florida foreclosure lawyer can provide crucial legal advice and defense strategies to protect your rights as a homeowner. At Charlip Law Group, LC., our lawyers have a deep understanding of the intricacies of foreclosure laws in Florida and can guide you through the complex process, helping you build a strong defense against foreclosure and manage post-foreclosure debt to financial institutions. Schedule a free consultation today at (305) 354-9313 to discuss your case and explore your options.

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General Notice Requirements

In Florida, most residential mortgage agreements have language, often contained in paragraph 22, which is geared towards protecting the rights of the mortgage borrower by requiring the mortgage lender to provide notice to the mortgage borrower before taking foreclosure action. Under the notice requirements, the mortgage lender is often required to provide the mortgage borrower with a written notice that specifies the following:

  • The mortgage borrower’s default on the mortgage;
  • What the mortgage borrower must do to cure the default;
  • A date, generally not less than 30 days from the date notice of the default is given, by which the mortgage borrower must fix the default;
  • That the mortgage borrower’s failure to fix the default by the date specified may result in the mortgage lender requiring all the money due on the mortgage immediately (acceleration), foreclosing and selling the property; and,
  • That the mortgage borrower has the right to reinstate the loan after acceleration and the right to several defenses in a foreclosure case.

In the past, the mortgage lender was required to strictly comply with providing the mortgage borrower the information outlined above, in order to then successfully begin a foreclosure action. However, more recently, Florida courts have weakened the standard the mortgage lender has been held to, and required that the mortgage lender only substantially comply with the notice requirements of paragraph 22. For example, this generally means that the mortgage borrower has a weaker defense if the mortgage lender provided notice, but only 28 days within which to fix any default. Unless the mortgage borrower can prove to the court that the extra two days would have made a difference in terms of fixing their default, then the mortgage lender’s failure to provide the two days is immaterial.

Notice Requirements for Foreclosure in Florida Details
Mortgage Borrower’s Default Specifies the nature of the default on the mortgage.
Cure Instructions Outlines the steps the borrower must take to fix the default.
Deadline for Fixing the Default Provides a specific date (generally not less than 30 days) by which the default must be fixed.
Consequences of Failure to Fix the Default Explains the potential outcomes, such as accelerated repayment, foreclosure, and property sale, if the default is not addressed by the specified deadline.
Right to Reinstate the Loan and Defenses Informs the borrower of their right to reinstate the loan after acceleration and the availability of various defenses in a foreclosure case.

Other Defenses Available

While the courts may have weakened the mortgage borrower’s defenses by changing to a substantial compliance versus a strict compliance approach, a mortgage borrower may still have several other defenses available in a foreclosure action. Some common defenses include showing that the mortgage lender bringing the foreclosure action is not the lender holding the note to the mortgage, or that the mortgage lender sent the required notice to the wrong address without the mortgage borrower’s knowledge.

Can You Stop a Foreclosure Once it Starts?

Florida state law notably leans towards favoring the homeowner compared to the mortgage lender in various aspects. For instance, the legislation necessitates that lenders go through a judicial foreclosure process. This implies that the bank cannot merely foreclose on the property and expel you from your residence. They are required to file a lawsuit against you in court and validate the legitimacy of the case before you can be dispossessed of your home. As per the 20-day rule, you’re granted 20 days after receiving a summons and impending lawsuit from the bank to engage legal counsel to strategize a defense against foreclosure. The role of your attorney is to refute or even invalidate the evidence that you are indeed in default, or that the bank holds the mortgage and possesses the right to foreclose.

Should you manage to gather the necessary funds to cover the default amount before the foreclosure sale, you have the ability to halt the foreclosure by paying this amount to the bank. This is termed your “right of redemption,” and it’s a paramount right when confronting foreclosure. This right ceases to exist once the property is sold to another party. However, you might still have a chance to reverse the situation. By substantiating– that the bank made mistakes in executing the court order for foreclosure within a 10-day period, you may have the chance to regain the property from the bank.

When experiencing foreclosure, it is important to consider seeking the assistance of a Florida foreclosure attorney. An experienced attorney can provide valuable guidance and support throughout the foreclosure process. Schedule a free consultation with Charlip Law Group, LC today to discuss your case and explore your options.

Contact An Experienced North Miami Foreclosure Attorney

If you are facing foreclosure, it is important to seek an experienced foreclosure defense attorney to protect your interests. Contact the North Miami foreclosure attorneys at Charlip Law Group, L.C. for a consultation on your case.

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