Deficiancy Judgement Process in Florida

Hi michaelham,

The bank will send you a notice regarding the deficiency payment. If they seek a judgment order, you may be informed about it. The best thing is to ask the bank what they intend to do once the foreclosure sale is executed. By the way, is it your home that has been foreclosed?

caron, thanks for your response. how did you guess, yes it is my property. when you ask the bank this question they don't give you a straight answer. they tell you what can happen. i guess you just have to wait. i have about three months until the sale and am trying a last ditch short sale. i tried everything in the past myself but nothing worked out. i am working with a short sale/loss mitigation company out of california call access loss mitigation. i did my due dilagence on the company and they seem ligitamate. they get paid from the sale so i feel more comfortable considering i don't have to pay anything. any ideas or thoughts would be much appreciated. i also have the problem of trying to get a job ( i lost my job recently) with a foreclosure or if i have to file bancruptcy. i am in financial services and most companies look at credit.

thanks,

mike

Hi michaelham

A short sale will be a much better option keeping in mind the fact that it lowers your credit score by only 75-100 points. I think if you can negotiate with the lender properly, then they will be ready to offer you a short sale. However, you should note that you will have to pay the deficient amount resulting from the sale of the property.

Thanks.

I have read that Florida is a non-recourse state in which the lender of a mortgage cannot seek to recover the difference owed after a foreclosure sale. Now I read that it is allowed to seek repayment through a deficiency Judgement claim. What is correct?

Hi Mildred,

In Florida, the lenders can obtain a deficiency judgment against the borrowers if their property is foreclosed or short sold. However, if the your loan docs state that the loan is a non recourse one, then the lender will not be able to sue you for the deficient amount. The lender can only seize the collateral against which he has given the loan.

Thanks,

Jerry

Is there a quick and easy way to find out if your mortage is non-recourse. I assume that it may say that somehwere in the mountain of documents?

Thanks
Andrew

Welcome Andy B,

You need to check your mortgage docs to know if your loan is a non-recourse one or not. You may even ask your lender and confirm it.

I am looking at my original note and cant find terms recourse or non recourse anywhere.Can anyone help with terms used.I live in Florida and mtge is thru Sun Trust

I would suggest you to speak to your lender and get it clarified by them. They will be the best person to tell you whether your loan is recourse or non-recourse.

i HAVE A CAR IN DO TO DO A VOLUNTARY REPO I HAVE LOST MY JOB I LIVE IN FLORIDA CAN THEY DO A DEFFICANCY JUDGEMENT? HOW DO THEY COLLECT IF I AM NOT WORKING.

Hi

If you default on your car payments the lender will repossess your car and sell it to get the loan amount back. If the sale proceeds aren't enough to satisfy the amount owed they may get a judgment against you. They may also forgive the difference since you don't have a job with you. It's up to them.

we had a forclosure but the second mortgage is still trying to collect, can they do that? i thought the house could not be sold without satisfying the second also. what can i do?

Hi Flfoxes,

The second mortgage lender has the rights to come after you to recover his balance amount though the first mortgage lender has foreclosed the property. The first mortgage lender does not have the liability to pay the second lender.

Thanks

have no assets but our home and our Social Security. Our mortgage is with Sun Trust for $230,000 and our home is worth about $130,000. Were moving out of state very soon. Since Florida is a "recourse state", if we walk away from our home, and since we have no assets, what can the bank do to us?
Thanks for your help.

Hi Geta!

Welcome to forums!

Your query has been replied to in the given page:
http://www.mortgagefit.com/know-how/about52039.html

Take a look at it. I hope it will help you.

Sussane