Naples Foreclosure Process


What is an REO?

An REO or Real-Estate-Owned is a real property that has gone through the process of Foreclosure and it is now owned by the bank or the Mortgage Company.

Here are some of the steps of the Foreclosure Process in Florida.

Notice of Default

When a homeowner stops making their monthly payments on the mortgage or the note it is said that he/she defaulted on their mortgage. This is when the owner of the mortgage, bank or mortgage company sends a written notice to the mortgage holder informing them how much money is owned and what steps the homeowner should try to avoid going in foreclosure.

Lis Pendens

After the Notice of Default the mortgage lender will file a court action by recording a Lis Pendens (pending lawsuit) against the homeowner.

Notice of Action

This is when, in the State of Florida, the Foreclosure process starts. It is known as pre-foreclosure process. Usually a foreclosure process will last about 5 months until the property is offered at a foreclosure sale.

The borrower is made aware of the notice of Foreclosure and has a certain amount of time to respond to the court action. If the home owner doesn’t respond to the court action, the clerk of the court may find the borrower in default and request the court to make a final ruling in the lender’s favor.

Foreclosure Action

Usually the lender will ask for a foreclosure sale. A notice of foreclosure sale is issued and the sale date and location are published in the local newspapers once a week for at least 2 weeks.


The borrower has the right of redemption and they can repay the total mortgage amount until the day of the auction. If the borrower pays the entire amount of the loan, the foreclosure process stops and the homeowner can assume ownership of the property.

Foreclosure Auction or Sheriff’s Sale

The sale occurs usually at the courthouse and the clerk of court oversees the sale. The property is auctioned off and sold to the highest bidder. The opening bid is a sum of the note amount, taxes, association fees due and all the expenses incurred with the foreclosure process. After the sale, the clerk issues a Certificate of Sale and after 10 days the new owner receives clear title.



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