Detailed Answer
Preparing a jointly owned property for sale before a foreclosure hearing in Florida requires a clear understanding of co-ownership rights, relevant deadlines and state statutes. Follow these steps:
1. Confirm Ownership Interests
Under Florida law, co-owners may hold property as tenants in common or joint tenants. Tenants in common divide ownership interests by percentage: see Florida Statutes §689.15. Joint tenants share equal interests.
2. Review Foreclosure Filings and Lis Pendens
Before a foreclosure hearing, the lender must file a lis pendens to notify all parties and potential buyers of the pending action: see Florida Statutes §48.23. This notice attaches to the title and can complicate sale efforts. Confirm the status of any foreclosure filings in county records.
3. Communicate with Co-Owners and Lender
Discuss sale strategies and net proceeds distribution based on ownership shares. Request the payoff amount from the lender, including principal, interest and costs. Verify if a short sale or deed in lieu is acceptable to the lender.
4. Order a Title Search
A title search reveals liens, judgments and easements. Clearing liens may involve negotiating payoff amounts or obtaining subordination agreements. Work with a title company or real estate attorney to resolve encumbrances.
5. Make Necessary Repairs and Inspections
Enhance marketability by conducting a home inspection. Address health and safety issues, cosmetic repairs and curb appeal. Document costs for accurate distribution among co-owners.
6. Decide on Sale Method
Options include listing with a real estate agent, auction or short sale. Each method has deadlines tied to the foreclosure timeline. Auctions may require lender approval. Coordinate sale timing to avoid auction date conflicts.
7. Coordinate Closing Logistics
Obtain written consent from all co-owners. Provide clear title documentation to the buyer. At closing, distribute net proceeds according to ownership shares after satisfying the mortgage lien and costs.
8. Consult a Florida Real Estate Attorney
Although this guide provides an overview, Florida foreclosure law is complex. An attorney can assist with lis pendens removal, redemption rights and closing challenges.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an attorney for guidance on your specific situation.
Helpful Hints
- Request a payoff statement from the lender early to estimate sale proceeds.
- Verify all co-owners’ signatures on listing agreements and closing documents.
- Check county clerk’s website for foreclosure hearing dates and deadlines.
- Keep records of repairs, inspections and communications with the lender.
- Consider mediation with the lender to explore alternatives to foreclosure.