Jacksonville Foreclosures are done according to the provisions of Florida state foreclosure law. In this city, mortgage at the time of loan approval are not signed between lender and borrower. Mortgage in terms of economics is a deed of trust. As per this trust, property of the homeowner is the guarantee for lender. Depending upon this guarantee, lender approves the loan and expects its repayment with interest in the assigned time frame. All goes well till there is regularity in repayment. But, any deviation or substantial default puts the lender in a harsh situation. To recover his investment, the lender has to foreclose the property of the borrower.
But the foreclosure process of pledged property or distressed homes is not as a simple as it appears. If there were a mortgage, lender is empowered with power of sale and has the capacity to foreclose the property without informing county court. But, absence of mortgage multiplies the worries of the lender. He has to take judicial help in this regard. Before it, a mandatory 20 days time period is give to the borrower. Some of the defaulting borrowers repay the amount in these twenty days and get rid of foreclosure. Those unable to do this repayment are summoned by the court for hearing of foreclosure plea.
During the foreclosure hearing of distressed homes all parties are summoned. Court listens to them carefully. Intent of payment (for the borrower) is also given prior importance. If the court senses substantial default and negative intent to pay the default amount on behalf of the borrower foreclosure plea is approved. Court orders for an open auction on the said property to enable the lender to get back his money. Along with, other lien holders are also given importance during this process. Homeowner is at the losing end of judicial foreclosure pyramid. That is the reason why many homeowners are now selling their homes at pre-foreclosure stage.
Auction of Jacksonville foreclosures properties is open in nature. It means all American citizens can take part in it. For participation, a required amount should be deposited with the designated authority before the date of auction. On the auction date, all participants bid and the priority is given to the highest bidder. Winning the bid is not enough. The winner has to deposit rest of the amount (value of the home minus deposit made) in an assigned time period. Any failure in this regard, ceases deposits of the highest bidder.