Posted on: 08th Aug, 2007 01:58pm
If your property is sold in a Florida judicial foreclosure and the sale price is less than the actual amount owed, you will be responsible for paying the deficiency. The lender can either forgive this deficient amount or come after you to recover it.
Can lenders get deficiency judgment Florida?
The lender can obtain a judgment against you to recover the deficiency. He has to file a separate motion/lawsuit for a deficiency once the foreclosure sale is complete. The court then holds a hearing to decide if a deficiency judgment can be allowed against you. At the hearing, the lender has to prove that the property value is indeed less than what you owe.
As a borrower, you have the right to oppose your lender's claim for judgment. You will have to prove that the property is worth more than the outstanding mortgage balance at the time of foreclosure. You can use an appraisal or the tax assessed value of the property to support your claim.
As a borrower, you have the right to oppose your lender's claim for judgment. You will have to prove that the property is worth more than the outstanding mortgage balance at the time of foreclosure. You can use an appraisal or the tax assessed value of the property to support your claim.
What happens after lenders get judgment?
Deficiency judgment Florida allows lenders to come after your wages, levy your bank accounts and put liens on your other properties. However, there are certain assets which are exempt from judgments. They include IRA, 401k, other retirement accounts, social security income, unemployment benefits, workers compensation, etc. Your lender has the right to collect on that judgment for 20 years. The interest will accrue every year till it is paid in full. Apart from this, the judgment will show up on your credit report for 7 years and will affect your credit scores adversely.
Are your wages exempt from garnishment?
If you are the head of the family and your net wages are less than $500 per week, you can protect your wages from garnishment. But if you've signed any document allowing the wage garnishment, the lender can come after your wages. In case you are not the head of the family, you can still protect certain part of your wages. Federal law limits the amount of money that can be garnished by your lender. He can take only 25% of your net wages or the amount in excess of 30 times the federal minimum wage per week, whichever is less.
Are homestead properties exempt from deficiency judgment Florida?
Homestead properties are not protected from judgments for mortgage liens. You can protect your home from creditors of unsecured debts under homestead protection. But lenders, who have financed purchase, repair, improvement, etc. of your home, hold a lien on your property. If you default on such secured loans, your home is not protected from judgments.
Does PMI help you cover the deficiency?
Private Mortgage Insurance (PMI) cannot protect you from deficiency judgments. It is meant to protect a lender against the losses from a mortgage default. A PMI is required if you make a down payment of less than 20% on your loan.
Is there a way to avoid deficiency judgments?
If you can stop foreclosure, you can avoid the judgment. In case you're having difficulty in making mortgage payments and a foreclosure is imminent, you can look for various loss mitigation options like loan modification, deed in lieu (DIL), etc. A loan modification can reduce your mortgage payments and help you save the home.
A deed in lieu does not help you retain the home. But it waives off the lender's right to collect the deficiency. This helps you avoid a judgment. However, you should not believe in verbal agreements. If the deficiency is forgiven, ask your lender to give it in writing before you proceed with the deed in lieu.
A deed in lieu does not help you retain the home. But it waives off the lender's right to collect the deficiency. This helps you avoid a judgment. However, you should not believe in verbal agreements. If the deficiency is forgiven, ask your lender to give it in writing before you proceed with the deed in lieu.
Hi I'm currently going through a foreclosure on two properties and would like to know how much time do the banks take to file a deficiency if they decide to do this? How will I know the sale price of the property at the court?
Any help would be greatly appreciated.
Any help would be greatly appreciated.
Hi Guest,
Both the husband and the wife can declare bankruptcy in order to clear the unsecured debt. However, you should note that if you file bankruptcy, it will lower your credit scores by 250 points and will stay in your credit report for 10 years.
Thanks,
Jerry
Both the husband and the wife can declare bankruptcy in order to clear the unsecured debt. However, you should note that if you file bankruptcy, it will lower your credit scores by 250 points and will stay in your credit report for 10 years.
Thanks,
Jerry
going into foreclosure with my property in ohio,i lived in it [not a rental], i have a small property in florida that i want to move into,my question is, whats the worst case sceneario that the lender can impose regarding my florida property,also i,m ill, medication is keeping me alive,is this a defence? thank you.
Welcome jeffers,
In Florida, the lender can obtain a judgment against you to recover the deficient amount resulting from the foreclosure sale. As you're ill and on medication, you can request your lender to forgive the dues. It will be the lenders discretion whether or not he would consider your request.
In Florida, the lender can obtain a judgment against you to recover the deficient amount resulting from the foreclosure sale. As you're ill and on medication, you can request your lender to forgive the dues. It will be the lenders discretion whether or not he would consider your request.
hi adonis,thanks for your prompt reply,can the lender take title of my florida property/lien????????? jeffers
Hi jeffers!
Welcome to forums!
If the property is being foreclosed by the lender, then he will takeaway the title of your property.
Sussane
Welcome to forums!
If the property is being foreclosed by the lender, then he will takeaway the title of your property.
Sussane
maybe i was not clear susanne,my ohio property will be foreclosed,the question is what is the worst damage the lender can do regarding my florida property,can they take possession-deed? place a lien? whats the worst case sceneario? thank you, jeffers.
Hi jeffers,
If your property in Ohio is foreclosed, the lender may place a lien on your Florida property. However, in order to do so, he will have to file a lawsuit against you in Florida and get a judgment. Unless he gets a judgment in his favor, he won't be able to place a lien on your Florida based property.
Thanks
If your property in Ohio is foreclosed, the lender may place a lien on your Florida property. However, in order to do so, he will have to file a lawsuit against you in Florida and get a judgment. Unless he gets a judgment in his favor, he won't be able to place a lien on your Florida based property.
Thanks
Dear Jessica,
Our home in Florida was sold via a short sale.
We owed $160,000 on the first mortgage and $50,000 on the 2nd mortgage.
The short sale is for $90,000.
The 2nd mortgage holder has stopped the sale and wants us to fork over the $50,000.
What is our best course of action and what should be included in any agreement we execute with both lenders.
Thanks
Our home in Florida was sold via a short sale.
We owed $160,000 on the first mortgage and $50,000 on the 2nd mortgage.
The short sale is for $90,000.
The 2nd mortgage holder has stopped the sale and wants us to fork over the $50,000.
What is our best course of action and what should be included in any agreement we execute with both lenders.
Thanks
I have a mortgage on a rental house in Kentucky that is going into default. Can the lender obtain a judgement against my home in Florida?
hi patrick,
the second lender has the rights to ask you for the balance amount of the second mortgage. you will have to negotiate with the second lender and draw up a payment plan so that it becomes affordable for you to pay off the dues and the lender agrees to the short sale.
to samp,
the lender will have to file a judgment against you in the law court of florida. if the lender gets a judgment against you, he will be able to file a lien against your property.
the second lender has the rights to ask you for the balance amount of the second mortgage. you will have to negotiate with the second lender and draw up a payment plan so that it becomes affordable for you to pay off the dues and the lender agrees to the short sale.
to samp,
the lender will have to file a judgment against you in the law court of florida. if the lender gets a judgment against you, he will be able to file a lien against your property.
i am in the process of filing bankruptcy through a law firm who's been on my case for a while, but not yet filed, so now that they are typing my petition they tell me that all foreclosure properties are no longer under my name and that some of them are now sold and owned by someone else?
can the lender still file a deficiency judgment against me? will i get a 1099 from the irs? where can i find this information by state to confirm status of court proceedings pending or other?
i am not 100% sure whether i should continue with bankruptcy as the foreclosures were the main reason and not the credit card debts which i may be able to settle? i am also still unemployed and still need to find work again.
any help is greatly appreciated. thanks.
can the lender still file a deficiency judgment against me? will i get a 1099 from the irs? where can i find this information by state to confirm status of court proceedings pending or other?
i am not 100% sure whether i should continue with bankruptcy as the foreclosures were the main reason and not the credit card debts which i may be able to settle? i am also still unemployed and still need to find work again.
any help is greatly appreciated. thanks.
I owened 6 properties, i cant keep one, lost my home, my husband left us, (seperated status) i have 2 small kids, live of foodstamps, and rent a place,
we tried shortsales, offers and offers, nothing, bank put them straight through online foreclosure sale,
what now?????? how do i know if they put a deficiency judgement on me , I have no lawyer, cant afford one, and what happens if they do, should i then file for BK, this all is just too much for me... please pretty please help with some answers, i like ur info above, very helpful,
thank u
Kerstin
we tried shortsales, offers and offers, nothing, bank put them straight through online foreclosure sale,
what now?????? how do i know if they put a deficiency judgement on me , I have no lawyer, cant afford one, and what happens if they do, should i then file for BK, this all is just too much for me... please pretty please help with some answers, i like ur info above, very helpful,
thank u
Kerstin
To distress,
If you haven't filed bankruptcy yet, then the lender can come after you in order to recover the balance amount. If you don't want to pay the deficient amount, then you can include it in your bankruptcy filing and get it discharged. If you were filing bankruptcy just for your mortgage debts, then as the foreclosure is over, you can negotiate with the lender and ask him to forgive the dues so that you're not liable for the payments. If the lender agrees to your request, then he'll issue a 1099c form. However, you won't be liable for paying taxes due to the Mortgage Debt Relief Act.
To babies,
Your lender will let you know whether or not he will come after you to recover the balance amount. If the lender comes after you for the balance dues, then you may file Chapter 7 and get it discharged.
If you haven't filed bankruptcy yet, then the lender can come after you in order to recover the balance amount. If you don't want to pay the deficient amount, then you can include it in your bankruptcy filing and get it discharged. If you were filing bankruptcy just for your mortgage debts, then as the foreclosure is over, you can negotiate with the lender and ask him to forgive the dues so that you're not liable for the payments. If the lender agrees to your request, then he'll issue a 1099c form. However, you won't be liable for paying taxes due to the Mortgage Debt Relief Act.
To babies,
Your lender will let you know whether or not he will come after you to recover the balance amount. If the lender comes after you for the balance dues, then you may file Chapter 7 and get it discharged.
This is complicated but I will try to br brief. Purchased an older home, 20% down which depleted savings, and financed 80%. Decided to completly remodel before moving in. Refinanced current home which was almost paid off to do this. Also bought a small condo to live in temporarily as this location was 275 miles from the primary home and I had already taken a job there. My wife was still working in the area of the primary home. The house to be renovated was in a flood zone which created unusual restrictions (FEMA). The contractor errored and the city buiding officials declared that as a result the house would now have to be elevated 2 ft or torn down. Cont'd in Dutch 2