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.
My partner and I were both served with a summons for foreclosure. I am only listed on the titile and not on the morgage. I'm worried why they would even send me a summons. I am responding to it by simply saying that I am not mentioned on the load. Do you think that's enough? Am I responsible to do anything else especially if it does end up on foreclosure. Thanks for your advice.
Welcome Guest,
As your name is not mentioned on the mortgage docs, you're not personally liable for the loan. Thus, the foreclosure won't affect you. The lender may have send you the foreclosure notice only because your name is mentioned on the property deed. You should reply to the summons stating that your name is not on the loan and I'm sure it will be enough for you.
As your name is not mentioned on the mortgage docs, you're not personally liable for the loan. Thus, the foreclosure won't affect you. The lender may have send you the foreclosure notice only because your name is mentioned on the property deed. You should reply to the summons stating that your name is not on the loan and I'm sure it will be enough for you.
part 1: Is chapt. 13 better than wage garnishments? I know wage garnishments can last for a considerably long time but they don't take as much out of you paycheck.( I make >45k and with very little exemptions I figure they will take a *lot*)
part 2. If I do go for chapter 13 then lose my job for an extended period of time can I convert to chap. 7?
Overall I'm happy I'm making decent money now but with the job market and the fact that I'm working at a startup with negligible job longevity makes me very skittish about bankruptcy unless it's a full discharge.
Gory history:
I do not want to keep the house I'm 60k+ underwater on. I bought a house in Florida, lost my job then moved to Arizona to find work. My note was with countrywide subprime now it's with BoA. I haven't been able to make a payment since Oct 2009. I'm also facing a 18k debt for a repo'd car. In addition I have way too much school debt but it's consolidated at the moment.
part 2. If I do go for chapter 13 then lose my job for an extended period of time can I convert to chap. 7?
Overall I'm happy I'm making decent money now but with the job market and the fact that I'm working at a startup with negligible job longevity makes me very skittish about bankruptcy unless it's a full discharge.
Gory history:
I do not want to keep the house I'm 60k+ underwater on. I bought a house in Florida, lost my job then moved to Arizona to find work. My note was with countrywide subprime now it's with BoA. I haven't been able to make a payment since Oct 2009. I'm also facing a 18k debt for a repo'd car. In addition I have way too much school debt but it's consolidated at the moment.
welcome desertrat,
if you go for chapter 13, you will get a payment plan to pay all your creditors. this payment plan will depend upon your financial situation. if you lose your job in the mean time, you'll be able to convert your chapter 13 bankruptcy filing into chapter 7.
if you go for chapter 13, you will get a payment plan to pay all your creditors. this payment plan will depend upon your financial situation. if you lose your job in the mean time, you'll be able to convert your chapter 13 bankruptcy filing into chapter 7.
I have an investment property in Fla that is in foreclosure but no date has been set yet. If a judgement is entered against me, will assets jointly owned with my wife be in danger if she didn't sign the loan for the investment property? She was not a part of the purchase of the property. We live in the state of PA.
Hi marlew,
Though you own the assets jointly with your wife, the lender can come after them as your name is mentioned on the assets. The lender may force you sell off the property in order to recover his dues and pay the rest of the amount back to your wife.
Thanks
Though you own the assets jointly with your wife, the lender can come after them as your name is mentioned on the assets. The lender may force you sell off the property in order to recover his dues and pay the rest of the amount back to your wife.
Thanks
I filed for chapter 7... I am not reaffirming the debt. Should I try to short sale the property now or DIL or just let them foreclose. Florida is a little different than some other states or vise versa!!
Welcome Bobby,
As you've filed bankruptcy and you're not reaffirming the loan, you can go for any of the options as per your discretion. The lender will sell off the property after you transfer it to him in order to recover his own dues. However, he won't be able to come after you in order to recover the deficient balance as your loan has been discharged in your bankruptcy filing.
As you've filed bankruptcy and you're not reaffirming the loan, you can go for any of the options as per your discretion. The lender will sell off the property after you transfer it to him in order to recover his own dues. However, he won't be able to come after you in order to recover the deficient balance as your loan has been discharged in your bankruptcy filing.
I had a short sale November 09. We settled the equity line of credit, had the closing. I receive the "paid in full, account closed" letter. I also went on line and got a copy of the satisfaction of mortgage letter filed with Palm Beach County. I am getting calls and received a statement with a payment stub to start paying off the balance, from a collection agency. What is needed to clear this up?
Thank you Salvatore
Thank you Salvatore
Hi Salvatore!
Welcome to forums!
You need to contact the collection agency and let them know that the account has been paid in full and you have the letter in regards to that. You can even fax a copy of the letter to them. You can ask them to not call you any further. If they still call you, then you can take legal actions against them.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You need to contact the collection agency and let them know that the account has been paid in full and you have the letter in regards to that. You can even fax a copy of the letter to them. You can ask them to not call you any further. If they still call you, then you can take legal actions against them.
Feel free to ask if you've further queries.
Sussane
I bought an investment condo on Clearwater Beach, FL in 11/2005. All mtge payments were made on time until 6/2010. I stopped paying the mtge
( total $360K) ( with B of A) in 6/2010 . The condo has been listed ( for $200K, since 6/2010 )with a realtor as a short sale. No offers yet, even with lowering the price. The maintenance is paid and up to date.
What is the quickest and best course of action , so I will be free of the property and not responsible for any more debt. Bless you and thanks for your time.
( total $360K) ( with B of A) in 6/2010 . The condo has been listed ( for $200K, since 6/2010 )with a realtor as a short sale. No offers yet, even with lowering the price. The maintenance is paid and up to date.
What is the quickest and best course of action , so I will be free of the property and not responsible for any more debt. Bless you and thanks for your time.
My mother is trying to sell her home and property. She has recently had a judgement signed against her for a truck that was returned to a bank because she could not make payments any longer. When her property sells will she be liable for the judgement from the sell price?
Thank you.
Carolyn
Thank you.
Carolyn
hi!
welcome to forums!
to djr,
you can contact the lender and apply for a deed in lieu of foreclosure in order to get rid of the property. if the lender accepts this request, then you'll be able to sell off the property and you won't be liable for paying any deficient balance resulting from the sale of the property.
to vcm,
when your mother sells off the property, she will have to pay off the judgment from the sale proceeds.
sussane
welcome to forums!
to djr,
you can contact the lender and apply for a deed in lieu of foreclosure in order to get rid of the property. if the lender accepts this request, then you'll be able to sell off the property and you won't be liable for paying any deficient balance resulting from the sale of the property.
to vcm,
when your mother sells off the property, she will have to pay off the judgment from the sale proceeds.
sussane
i have a property being foreclosed on and have filed for bankruptcy. i also have a homestead property that i live in. can the state of florida come after my homestead property and for the deficiency of the foreclosed property?
i am in a financial crises. if i will consider a dil will i need an attorney?will the bank sign off on dificiency? can banks go after other prop. you own that are in a trust? can banks go after property you own outside the state of florida?