Reasons a Foreclosure May Be Delayed in Fort Lauderdale

A house littered with outdoor debris and boarded-up windows stands vacant in Eau Gallie, and it has for over ten years. The bank foreclosed on it in 2007 but has had a previous owner since that time. That owner died in 2020 and now, a number of circumstances have held up the foreclosure. Until the foreclosure goes through and something is done with the property, it will remain what it is today, a place for crimes to take place. In 2018, a woman died from an overdose inside the home and last year, a man was beaten and killed.

Stories like this are shocking for everyone, particularly the homeowners that own real estate near such zombie homes. Unfortunately, it happens all too commonly. In the above story, the foreclosure was stalled due to the case being held up in probate court, and because it was part of a bankruptcy case. The bank tried to foreclose on the home once again but it was tied up in early 2020 because of the COVID-19 pandemic. While some of these reasons are extraordinary and do not apply to everyone, there are other reasons a foreclosure case may be delayed in Fort Lauderdale. They are outlined below.

Stays and Continuances

Many people use the terms ‘stay’ and ‘continuance’ as the same legal term, but the two are quite different. A stay is an order issued by a judge that puts a foreclosure case on hold. A stay can be temporary or permanent. After a judge orders a stay, nothing will happen with the foreclosure case, including scheduling a hearing or trial date. The only way the case can proceed is for the judge to lift the stay. A bankruptcy stay, for example, places a foreclosure on hold until the bankruptcy case is closed.

A continuance, on the other hand, is when a judge issues an order that delays the hearing or trial date in a specific foreclosure case. A continuance can happen before, during, or even after a hearing or trial has begun. Either party in a foreclosure lawsuit can request a continuance. For example, the lender may want to postpone the trial because they need to locate witnesses or find documents. Or, a borrower may want to postpone the trial date to give them more time for discovery.

The Backlog of the Courts

In the most recent story, one of the reasons the foreclosure has been delayed for so long is that when the lender was ready to foreclose again, the COVID-19 pandemic prevented it from happening. At the beginning of the pandemic in March and April of 2020, courthouses were shuttered for months. That not only delayed foreclosures that were happening at the time, but it will also affect the length of time a foreclosure in Fort Lauderdale takes now.

As the pandemic continued and more Florida courts started to reopen, the backlog was a very serious issue. At the time, there was a 990,000 case backlog of foreclosure cases alone, and the court system was asking lawmakers for $16 million due to the increased workload to clear the backlog. When making their request, the court system stated it expected to be dealing with the fallout from the pandemic for the next three years. That does not mean that a single foreclosure case will take three years. It does mean, however, that the backlog of the courts will affect homeowners facing foreclosure in some manner.

While the courts slowly start to get through the current backlog of cases due to COVID-19, it is important to remember that courts are backlogged often, even when there is not a pandemic going on. The court system in Florida is often overburdened and any time there is a backlog of cases, it will affect your case.

A Bankruptcy Case

If you are facing foreclosure and file for bankruptcy, it will delay your case. How long it delays your case will depend on the type of bankruptcy you file. You will temporarily stall your foreclosure case if you file for Chapter 7 bankruptcy. If you are current on the loan and do not have a lot of equity in the home, you may be able to save your home, even when filing Chapter 7. If the loan is in default or you cannot otherwise modify the loan, you will likely lose your home during a Chapter 7 bankruptcy. Still, that can take several months and can provide a necessary delay to save the home.

Homeowners who want to file for bankruptcy and still keep their homes should file Chapter 13 bankruptcy. During a Chapter 13 bankruptcy, your debts are restructured, and that could include your mortgage debt. A mortgage arrearage will allow you to pay the defaulted payments over several years, usually three to five. You can also try to modify your loan during this bankruptcy process.

Other Factors that Could Delay Foreclosure in Fort Lauderdale

In addition to bankruptcy and the backlog of the courts, other factors could delay a foreclosure in Fort Lauderdale. These include:

• Lost documents: Lenders must have certain documents to prove that they have standing to foreclose and if they do not, that can delay a foreclosure case.
• Loss mitigation: Loss mitigation occurs when the lender and the borrower agree to bring the loan back into good standing.
• Hardship: In certain circumstances, you may be able to write a letter or otherwise explain your hardship to delay or avoid foreclosure.

Our Foreclosure Defense Lawyer in Fort Lauderdale Can Help with Your Case

If you are facing foreclosure and want to learn more about how to possibly delay or avoid foreclosure, our Fort Lauderdale foreclosure defense attorneys at Loan Lawyers can help with your case. We know the defenses available in foreclosure cases and will advise on what is best for your case. Call our Florida foreclosure defense lawyer at (954) 523-4357 or fill out our online form to schedule a free consultation.