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Deficiancy Judgement Process in Florida

Posted on: 10th Jan, 2009 09:38 am
Does anyone know the actual deficiancy judgement process in Florida? For example, how do you know if the bank is going to procede with a deficiancy? What are the time frames after the foreclosure sale where they can pursue a judgement? Etc.....

Thank you for your help in these trying times.

Mike Hamilton
everything about your property (should be) not must be!! recorded in the clerk of the circuit courts office in the county seat where the property is located !! thats everywhere! and the other thing is the your property taxes, they are recorded and paid to the city and/or county tax collector in the county or city where the property is located, thats everywhere!
when someone, like a lawyer files any type of paperwork involving your real estate there is a red flag that goes up, called "LisPendens" this means that "legal action is pending". it doesn't tell everyone that some type of trouble is coming, but it means that someone, somewhere, has some type of problem with the owner(s) and it involves the property!
u can look that up on the clerk of courts office website, usually! the clerks office is where things are recorded, so when someone says it recorded in the county seat, what they are telling u its in the clerks office! all the documents about the property are recorded there to be official, but it is not required by law to be recorded!
how stupid ha!! but its a darn good idea, and if a bank, a lender or a private person(buyer or seller)has anything to do with the sale of property, they should insist on it being recorded, if not, they are fool!! and can get cheated out of their money, or property, or both!!
The grantor is the selller, and the grantee is the buyer, thats what u call them in legal terms. so when u look them up, u go to the grantor/grantee index! and u can go back in time, from buyer to owner, and owner to buyer, thats called the chain of title!
thats part of the title search, thats what a person called an abstractor does, they look up the history to see everything is ok,and everyone has got paid! and the survey is ok, they say it" free and clear" with no clouds(problems) on the title!
the mortgage(the agreement to repay the loan) and deed(thats who owns the propery and who sold it) is recorded, but not the note(the paper that says I.O.U. so much money). there is no title like a car, thats the deed in real estate!! title means ownership in real estate, so if i ask you is ur name on the title, what i really mean is, is it on the deed?? and u make a mortgage payment, when its really a payment on the note, the i.o.u.! but thats what its called. so when its paid off, u burn the mortgage, not the note!! comfusing? u bet, thats why u should have a real estate attorney! they work cheap in my book, and can save u fortune! they take care of problems with the title and more!
anyone that wants to lock on to ur property goes to the clerks office to file the paperwork against it! the only other thing that u can have is, u owe property taxes,so check with the tax collector!

There are 4 reasons for foreclosure, you only need one of these to lose ur property, anywhere:
1. u didn't make ur mortgage payment(s)- default!

2. u didn't pay ur property taxes( u do have a grace period!)default!

3. u didn't pay ur hazard insurance(fire insurance)-default! the insurance company will tell who ever is owed money that u didn't pay, so if they want protection, since they are first ones to get paid, then they better pay the premium themself!! since u didn't!!

4. u didn't maintain the property in fair and normal condition-default!

Florida is a recourse state, so u can't just walk away scott free in Florida! u will get sued, the judge issues a deficency judgement against you, and u owe that amount, but don't have the property anymore! u lost ur down payment, all of ur payments, all the money u put into the place,and now u still owe money for a place u don't live in anymore, and ur credit just went down the tubes!!
a mortgage is a lien by the way! just like if u don't pay for the contractor for the new roof, he gets a lien against the property, so when its sold, u owe him!! a cloud on the title! if there are any,
u can't sell it until u clear it up, and its free and clear!!
hope that helped u!
professional help is best, and maybe cheapest too! a good real estate attorney is worth it, and so is a good real estate broker! they can save u alot of time, trouble and expense! and u may come out with more money then if u went it alone! what a fool u r to go it alone!
good luck on that idea!! LOL!!
Posted on: 22nd Sep, 2012 10:28 pm
Thanks for sharing this with us!! :)
Posted on: 24th Sep, 2012 12:07 am
I've read that Florida is recourse over and over, but stumbled upon this today;

Does your state offer an ant-deficiency law (Florida)?

No, but lender must serve lawsuit personally and deficiency is coudiscretion. Borrower must receive credit for the greater of fair market value of the property or the foreclosure sale price. See Florida Statutes Title 40, Ch. 702

Title XL
REAL AND PERSONAL PROPERTY Chapter 702
FORECLOSURE OF MORTGAGES AND STATUTORY LIENS View Entire Chapter

702.06eficiency decree; common-law suit to recover deficiency all suits for the foreclosure of mortgages heretofore or hereafter executed the entry of a deficiency decree for any portion of a deficiency, should one exist, shall be within the sound judicial discretion of the court, but the complainant shall also have the right to sue at common law to recover such deficiency, provided no suit at law to recover such deficiency shall be maintained against the original mortgagor in cases where the mortgage is for the purchase price of the property involved and where the original mortgagee becomes the purchaser thereof at foreclosure sale and also is granted a deficiency decree against the original mortgagor.
History.1, ch. 11993, 1927; CGL 5751; s. 1, ch. 13625, 1929.

How I read this I understand is if the deficiency is for original purchase money and the original bank purchases the foreclosed property at the auction (common) they can't come after you for the amount not covered by the sale.

Yes? No?
Posted on: 19th Jun, 2013 08:53 am
Hi Sweetbhunny!

Welcome to the forums!

As per what you have quoted, it seems that what you have understood is correct.

Sussane
Posted on: 19th Jun, 2013 10:17 pm
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