Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Florida, foreclosure is a judicial process, meaning that the lender must file a lawsuit in state court to enforce the mortgage agreement. When a homeowner defaults on their mortgage payments, the lender may initiate foreclosure proceedings. The process begins with the lender filing a complaint with the court and serving the borrower with a summons. The borrower has a specified period to respond, and if they fail to do so, the lender can seek a default judgment to proceed with the foreclosure. If the borrower contests the foreclosure, the case may go to trial. If the lender prevails, the court will issue a final judgment of foreclosure, and the property will be sold at a public auction. The proceeds from the sale are used to pay off the mortgage debt, with any surplus returned to the borrower. If the sale does not cover the debt, the lender may be able to seek a deficiency judgment against the borrower for the remaining amount. Florida law provides certain protections for homeowners, such as the opportunity to reinstate the loan before a specified deadline and the right to receive notice at various stages of the foreclosure process.