Get houe back in forclosure?

[Cliff]

Jurisdiction

Florida

If I foreclose on a house I hold the mortgage on, because of lack of insurance, do I get the house back, without having to auction it off?
Or do I have to auction off and give them amount over what is owed + expenses?

 

[army judge]

If I foreclose on a house I hold the mortgage on, because of lack of insurance, do I get the house back, without having to auction it off?
Or do I have to auction off and give them amount over what is owed + expenses?

You MUST read the contract/note BEFORE you do anything.

The note/contract should describe the foreclosure process.

Meanwhile, here is the foreclosure law explained for Florida:

In Florida, foreclosures are judicial, which means the lender (the plaintiff) must file a lawsuit in state court.

The lender's attorney initiates the foreclosure by filing a complaint with the court and serving it to the borrower, along with a summons that provides 20 days to file an answer.

YOU can't just take the property.
You must take the matter to the PROPER court.

https://www.propertyshark.com/info/foreclosure-process-florida/

 

[Cliff]

Understand tat. Just asking if I can just keep the house, or have to auction off and pay and excess of amt. owed + expenses, back to borrower?

 

[adjusterjack]

A look at the link posted by Army Judge suggests that the auction is mandatory.

Is insurance the only issue? Is the buyer still making payments? Is there nothing in your contract that allows you to insure the property and add the cost to the payments?

 

[army judge]

Understand tat. Just asking if I can just keep the house, or have to auction off and pay and excess of amt. owed + expenses, back to borrower?

I doubt very much that after all fees and expenses are deducted for selling th eproperty that there will be any profit for anyone.

That probably means that if you're owed $50,000 (for example), the house sells for $30,000, you're still left holding a piece of paper and never got any money even after the court proceeding, foreclosure, and sale.

If the debtor is a deadbeat, with very few assets, taking it to court gains you nothing.

People who buy property at foreclosure sales are thrifty to the "max", who desire to make as much money on foreclosed properties as possible.

 

[army judge]

Is insurance the only issue? Is the buyer still making payments? Is there nothing in your contract that allows you to insure the property and add the cost to the payments?

Great questions that a smart lender always asks BEFORE disbursing any funds.

However, a very smart lender might never have made the loan, absent better collateral, security, or a higher down payment.

 

[Tax Counsel]

Understand tat. Just asking if I can just keep the house, or have to auction off and pay and excess of amt. owed + expenses, back to borrower?

The property gets put up for auction and then you can bid in on the auction yourself if you wish.

 

[Cliff]

A look at the link posted by Army Judge suggests that the auction is mandatory.

Is insurance the only issue? Is the buyer still making payments? Is there nothing in your contract that allows you to insure the property and add the cost to the payments?

The owner is making payments.
If I could I would insure it.
Can't do without 30 day wait. Called 3 agents. All the same answer.
Only question. After foreclosing, can I just keep house, instead of putting up for auction?

 

[justblue]

The owner is making payments.
If I could I would insure it.
Can't do without 30 day wait. Called 3 agents. All the same answer.
Only question. After foreclosing, can I just keep house, instead of putting up for auction?

No...As several volunteers have already told you on this thread...including two attorneys.

 

[Cliff]

Great questions that a smart lender always asks BEFORE disbursing any funds.

However, a very smart lender might never have made the loan, absent better collateral, security, or a higher down payment.

As if you know how much the down payment was. Or other details.

 

[justblue]

As if you know how much the down payment was. Or other details.

What an silly and snarky comment to make to the attorney volunteer.

 

[zddoodah]

If I foreclose on a house I hold the mortgage on, because of lack of insurance, do I get the house back, without having to auction it off?

Please clarify what "get the house back" means.

Only question. After foreclosing, can I just keep house, instead of putting up for auction?

That question has been answered multiple times.

As if you know how much the down payment was. Or other details.

The amount of the down payment isn't relevant to your "only question." And, if there are relevant details we don't know, that's no one's fault but yours.

 

[adjusterjack]

The owner is making payments.

If there was no insurance requirement in your mortgage contract (you haven't said) then you have no grounds to foreclose because there is no breach of contract.

If you sued for judicial foreclosure without grounds you could be countersued for the the buyers defense costs.

If I could I would insure it.
Can't do without 30 day wait. Called 3 agents. All the same answer.

Did they say why a 30 day wait?

What kind of building is it?

Instead of "calling" agents, pick a few large independent agencies and walk in the door and sit down with an agent. Bring photos of the property and every bit of information you have about it and bring your checkbook.