Florida, also known as the ‘Sunshine State’ has always been a dream destination for people willing to invest in residential property. The slowdown in the real estate market in recent years has caused home prices to come down in this part of the US. So, if you are considering to invest in Florida based properties then, you need to have a good idea of the refinance rates here. Here are some of the major areas that you will have to focus on, to get the best refinance rates in Florida:-
Florida Mortgage and Foreclosure Rules
Florida follows the ‘lien theory practices’. This means that the concerned residential property acts a security for the mortgage loan. As a borrower, you will hold the property’s title. However, mortgage document will place a lien on the concerned property.
Foreclosure Process
Judicial foreclosure is necessary to buy residential property in Florida. In case a mortgage isn’t paid timely, then the lender will sue you in court, and a judge will provide the final judgement on foreclosure. This will enable the former to sell the property in an auction and acquire the money from proceeds of the selling price.The process will start once the lenders file a lis pendens. This will put a cloud on the title of the property. Following this, you will be served with foreclosure notice personally, and in case it is impossible, a public notice will be made. The residential property will be sold at a public auction, and its proceeds will be used by the lender to recover the debt.
Deficiency Judgment
Existing property related laws in Florida allow deficiency judgements since lenders have an option in case their loans aren’t cleared completely. In case the residential property sells at auction at less than what you borrow, then the lender might sue you for the remaining amount.
Right of Redemption
In Florida, a borrower who has lost his residential property to foreclosure possesses a right of redemption provided he can pay the full amount of money he owes, apart from taxes and extra fees. But this needs to be done prior to the court recording a certificate of sales, which will be given to a successful bidder in the auction. As the foreclosure process in Florida is a time taking one, you can have a year or even more to prevent a foreclosure by paying off the debts that you owe.
Important Foreclosure Laws that Change to Oversee
In Florida, foreclosure related laws are about to be changed to enable non-judicial foreclosures to take place. This will greatly minimize the costs related to the foreclosure process for banks and reduce the period required for a borrower to lose possession of his home in just three months than a couple of years.
Once you have a clear idea about the laws mentioned above, you will be able to avoid a situation in which you would lose your home.