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Question: Why does foreclosure take so long? My husband is interested in pursuing a [home in] foreclosure in the Jacksonville, Fla. area. Were from New York and have to buy something quickly and need to know what process we can expect and how long it will take. 

Answer: Each state has its own laws about the foreclosure process that impact the timeline between a homeowner defaulting on payments and the actual foreclosure date. Twenty-two states, including Florida, are known as judicial states because the law requires a foreclosure proceeding to take place through the court system. In nonjudicial states, attorneys are allowed to handle foreclosures.

Floridas foreclosure process should be speeding up because the Florida Supreme Court ruled in May that lawyers, instead of judges, can sit on foreclosure cases in the courts. This decision was made to end the backlog of foreclosures in the Florida courts.

The Florida Fair Foreclosure Act, which became law on June 7, is also aimed at streamlining and speeding up the process of foreclosures in the state. In the past, banks could collect losses for five years before initiating a foreclosure; now they are limited to one year.

A foreclosure in Florida begins after a lender files for court action against the borrower for nonpayment of the mortgage. The borrower is given a specific amount of time to respond before the court makes a final ruling. If the borrower cant repay the loan, a foreclosure date is set for 20 to 35 days after the ruling.

Foreclosure auction sales in Florida usually take place at the county courthouse. The winning bidder needs to have a deposit of 5 percent and pay the remaining balance by the end of the day. You can also look for bank-owned properties.

Short sales, which require an agreement from the homeowners lender to accept a payment for less than the outstanding balance on the mortgage, can also take a long time to get to closing, depending on the lender.

Buying a Foreclosure or Short Sale

If youre in a hurry and have a definite move-in date that must be met, short sales and foreclosures are probably not your best option. However, if youre willing to live in a temporary rental while you stay flexible in your search for a home, you may be able to acquire a residence for a below-market rate. Locate a Realtor with extensive experience helping buyers with foreclosures and short sales who can help you estimate the timeline and negotiate on your behalf.

Another potential issue with purchasing a foreclosure is the condition of the home. Since the owners have been unable to pay their loan, or possibly the home has been empty while the bank has worked through the foreclosure process, its unlikely anyone has maintained the property. You can schedule an information-only home inspection before you buy a foreclosed property. Some foreclosures have been repaired at the lenders expense, so its still possible to find one in good condition.

Financing a Foreclosure

Many foreclosures are purchased by investors interested in turning the property into a rental or repairing it and selling it. Youll be competing against investors for these properties who often are able to offer an all-cash transaction.

If you dont plan on buying a home with cash, you should arrange a solid pre-approval for a loan with a lender and have liquid cash ready for your deposit and down payment so that when a short sale or foreclosure becomes available you can move quickly.

Send your real estate questions to Michele at advice@realtor.com. and she may answer them in upcoming columns.

Michele Lerner, author of HOMEBUYING: Tough Times, First Time, Any Time, has been writing about real estate and personal finance since 1990. Her work has appeared in The Washington Post, MSN Real Estate, Fox Business, The Motley Fool, Bankrate, HSH.com, The Washington Times and Daily Finance.