In Florida, foreclosure of a mortgage in default is by a judicial action. Foreclosure is a lawsuit wherein the mortgage holder attempts to prove to the Court that you are behind in your mortgage obligations and requests that the Court set a public sale of the mortgaged real estate.
After the foreclosure sale, the Court will issue a certificate of sale and certificate of title. Upon issuance of the certificate of title, the purchaser at the foreclosure sale is the owner of the real property and is entitled to possession. The homeowner/mortgagor owns the involved house until the certificate of title is issued.
A person has certain options to save his home even after a foreclosure case is filed.
1. The simplest, but often the most difficult, alternative is to "reinstate" the mortgage--that is to find out the amount you are behind and pay the amount all at once. One may also try to obtain a payment plan once the mortgage is in foreclosure even if you offer to pay a substantial amount upfront.
2. You may also try to refinance the mortgage. Many people though do not have sufficient "equity" in their property in order to refinance.
3. A good alternative for many is to file for relief under chapter l3 of the Bankruptcy Code. Under chapter l3, the foreclosure case is stopped and you are given the opportunity to catch up the amount you are behind over a period of 3-5 years.