Foreclosure is a stressful and confusing process for any homeowner. In Florida, where the real estate market is complex and foreclosures are handled through the courts, misinformation often runs rampant. Many homeowners rely on faulty assumptions that can severely compromise their ability to defend their home or negotiate a favorable resolution. As experienced legal advocates at Rocky Rinker, we frequently encounter the same legal myths. Clearing up these common misconceptions about foreclosure is the essential first step toward building a strong defense strategy.

Common Misconceptions About Foreclosure

Myth 1: The Lender Doesn’t Have the Original Note, So They Can’t Foreclose

This is one of the most persistent and damaging myths. Years ago, the original promissory note was crucial evidence. However, modern law and the widespread practice of securitizing mortgages (selling loans to third party trusts or investors) have changed this.

• The Reality: Florida courts allow lenders to present a lost note count or use a copy of the note along with evidence detailing how they lost the original. A lender simply needs to prove they own the debt and have the right to enforce the note. While forcing the lender to prove ownership is a strong defensive tactic, assuming the case is over because the original document is missing is a critical mistake. A skilled foreclosure defense attorney will challenge the evidence of ownership, but they won’t rely on this single issue alone to win the case.

Myth 2: Filing Bankruptcy Will Stop the Foreclosure Permanently

It’s true that filing for bankruptcy (either Chapter 7 or Chapter 13) immediately triggers an automatic stay, which legally halts all collection activities, including a pending foreclosure sale. However, this stoppage is almost always temporary.

• The Reality: Bankruptcy does not erase the mortgage debt itself. In a Chapter 7 liquidation, the lender will eventually ask the bankruptcy court to lift the stay so they can proceed with the foreclosure. In a Chapter 13 reorganization, you are required to make your current mortgage payments and propose a plan to pay the past due amount (arrearage) over three to five years. If you fail to meet those payments, the lender will obtain relief from the stay and continue the foreclosure process. Bankruptcy is a powerful tool for delay and reorganization, but it rarely results in keeping the home unless you can resolve the underlying debt.

Myth 3: If You Negotiate a Loan Modification, the Foreclosure Stops

Loan modifications and short sales are common alternatives to foreclosure. Many homeowners believe that once they submit an application for a modification, the foreclosure lawsuit is paused until a decision is made.

• The Reality: The foreclosure lawsuit is an independent legal action, and the court will continue to move the case forward unless an attorney formally responds and defends the suit. While federal regulations generally require lenders to suspend efforts to finalize a foreclosure sale when a complete loan modification application is under review (loss mitigation application), the underlying lawsuit is rarely dismissed. The lender continues to prepare the case for trial or summary judgment. If your application is denied, the case can proceed quickly to judgment. You must hire an attorney to file an answer and affirmative defenses to protect your right to negotiate and challenge the foreclosure in court.

Myth 4: You Can’t Be Foreclosed On If You’re Behind By Only a Few Payments

Foreclosures are time consuming and expensive for lenders, so they often prefer to wait until a borrower is three or four months behind. This has led to the belief that you are safe until you hit a certain number of missed payments.

• The Reality: Most mortgage contracts stipulate that if you fail to make even one scheduled payment, you are officially in default. The lender technically has the right to accelerate the entire balance and initiate foreclosure proceedings as soon as the default occurs, provided they give you the required notice. While this is rare, relying on an arbitrary grace period is risky. Once you miss a payment, it is time to seek legal counsel.

At Rocky Rinker, we stress that effective foreclosure defense starts with accurate information. Don’t let these common misconceptions about foreclosure jeopardize your home. Consult with a knowledgeable Florida foreclosure defense attorney to understand your true legal position.