Our last post looked into Florida’s foreclosure process and what you should do if you are served court papers for a foreclosure. This post looks at what to do once you have answered your lender’s summons and complaint.

Florida is at the top of the list of states by percentage of homes foreclosing, only behind Nevada. Nearly one in every 148 houses is going through one stage or another of foreclosure. If you live in Florida it is likely you are either worried about foreclosure, suffering its effects, or know someone close to you that is.

So what should you do after you have filed your reply to a foreclosure summons and complaint form. You should contact your lender or the lawyer that is handling the foreclosure and negotiate terms to avoid foreclosure. This can include a loan modification, a short sale, a deed-in-lieu of foreclosure or simply a few months forbearance to get your finances together. Lenders cannot ignore your efforts to look for help. Since May 1, 2009 the 11^th Judicial Court (covering Miami-Dade County) and other courts in Florida, passed  an administrative order requiring mediation in foreclosure cases. This mediation program is called CHAMP, and could be your last chance to avoid losing your home. This is how it works.

Once a foreclosure lawsuit is filed the lender must contact the Collins Center and provide contact details for the borrower facing foreclosure. The Collins Center contacts will then call you and put you in touch with a Housing and Urban Development approved housing counselor. You can find a housing counselor near you at HUD’s website. The housing counselor will assist you in filling some financial forms and set a date for a mediation meeting with your mortgage lender.

Attend the mediation meeting and work with your lender and housing counselor to avoid the foreclosure. If you do not attend or no settlement is reached the lender will file a Motion for Summary Judgment. This document informs the Judge there are no facts in dispute between you and the lender. You will receive a copy of the motion; read it carefully, and check everything is correct. If you disagree with what the motion says file an affidavit with your version of the facts. Your housing counselor can help writing the affidavit. Remember the affidavit must be signed in front of a notary.

If you disagree on the facts the trial will be postponed to a further date. If there are no facts in dispute the Judge will schedule a foreclosure sale. If there are you will receive a notice of hearing. Attend that hearing, and take with you all the documentation to do with the foreclosure. Prepare yourself as a lawyer would. Be ready to explain clearly and logically what you disagree about with the lender, and what evidence backs your arguments. If you do not convince the Judge your house will be scheduled for a foreclosure sale. If you do convince him, or the lender failed to follow procedure correctly, your foreclosure could be postponed or even canceled.

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