Florida Foreclosure Laws

• Only judicial foreclosures are allowed in Florida, which means the lender must go through the Circuit Court to obtain a foreclosure judgment. The lender files a complaint and a notice of lis pendens (pending legal action) with the court, giving public notice of the foreclosure. Typically, an uncontested foreclosure in Florida takes between six and seven months to complete. The foreclosure sale of the property usually takes place at the county courthouse at 11 a.m. on the sale date. The winning auction bidder pays a 5 percent deposit and must pay the balance by the end of the day.
  
  

Appraisement

• The appraisement or appraisal value of a property is generally the price a willing buyer who is under no pressure to buy would pay to a willing seller who is under no pressure to sell. The appraisement value of property in Florida can also be referred to as the fair market value. Florida appraisement laws require an appraiser to consider eight statutory factors in determining the just valuation of a property: fair market value, present and best use for the property, location, size or quantity of the property, cost and present replacement value of any improvements, condition, income from the property and net proceeds from the sale of the property. If a property fails to sell at a foreclosure auction, the lender takes ownership and pays for a foreclosure appraisement before listing the home with a Realtor as an REO (real-estate owned) property.
  
  

Valuation

• Valuation is the process an appraiser or the county assessor goes through to determine the tax-assessed value of a property, for the purpose of calculating annual property taxes. The Florida Department of Revenue's assessors determine the just or fair market value of a property through appraisement or valuation, and they use that value to calculate the assessed value and tax liability for every parcel of real estate. When buying a Florida foreclosure, the buyer may end up owing past-due property taxes. Buyers will also pay a prorated tax amount for the year in which they purchase the foreclosed property. Generally, taxes for the following year will amount to roughly 2 percent of the purchase price of the home.
  
  

Homestead Law

• Some properties may be granted the Homestead Exemption in Florida, which means any increase in the assessed value of the property is limited to 3 percent. The valuation of a homesteaded property remains fixed. If ownership of the property changes, as in a foreclosure, the appraisement value of the home returns to the current fair market value.