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.
Do you know if florida allows for def. judgements for deed in lieu in. I know the bank can not pursue you, or even put it in the document. But i believe some states do not even allow it no matter what. BOA will not tell me, they just say if its allowed we may coma after you.
I went thru a short sale, the 1st mortgage forgave the nebative balance and issued a 1099. the 2nd Mortgage a (heloc) did not forgive. Can they get a judgement? I no longer own the house...can they garnish wages, go after other assets etc.
Thank you
Thank you
hi maglin,
if there has been deficiency from the sale of the home, you will be liable for the deficiency unless the lender forgives this amount and sends you a 1009c form. the second mortgage lender can come after you for the deficiency or they may sell it off to a collection agency. they can get a judgment against you, garnish your wages or go after your other assets. however, they do not generally sue you unless they feel that you have the financial ability to pay off the outstanding balance on the loan.
hi brian,
deficiency judgments are allowed in the state of florida. the lender can come after you if your house sells for less than the outstanding mortgage balance. your lender can sue you and can garnish your wages to recover the deficiency from you.
if there has been deficiency from the sale of the home, you will be liable for the deficiency unless the lender forgives this amount and sends you a 1009c form. the second mortgage lender can come after you for the deficiency or they may sell it off to a collection agency. they can get a judgment against you, garnish your wages or go after your other assets. however, they do not generally sue you unless they feel that you have the financial ability to pay off the outstanding balance on the loan.
hi brian,
deficiency judgments are allowed in the state of florida. the lender can come after you if your house sells for less than the outstanding mortgage balance. your lender can sue you and can garnish your wages to recover the deficiency from you.
i had my boat stolen around 2 yrs ago and the insurance company didn't pay because i didn't disclose to them everyone that was using the boat and the person who helped me get the boat signed some paperwork for me when i wasn't their without my knowladge. The boat was found in the bahamas and they dont want to give it back it was seized from the person that stole it from me, so long story short i owe the bank over 400K the boat is gone so its not secured anymore and i dont know what to do i cant do nothing all day but think about whats going to happen to me i'm scared out of my mind what will happen to me what should i do?
Hi prophecycc,
If the loan was secured by the boat, the lender has the right to repossess it in case of a default. But since the boat is lost the lender cannot repossess and sell it off to recover the outstanding loan amount. In such a situation, there are chances that the lender will come after you to recover the loan balance.
If the loan was secured by the boat, the lender has the right to repossess it in case of a default. But since the boat is lost the lender cannot repossess and sell it off to recover the outstanding loan amount. In such a situation, there are chances that the lender will come after you to recover the loan balance.
If you loose your home to forclosure can you request that future dedt from the lender be added. Meaning the deficiency judgement.
Should we pull all our monies out of the bank? We saved quite a bit because we are having our second baby soon, and I will not be returning to work. Our home is foreclosing, and in talking to the bank's third party company they requested to look at our financial statements. We told them that if they were working for the bank, they can obtain the paperwork via them to make sure it wasn't a scam and buy time. What should we do. I am stressing, I can't sleep thinking what if they take our money??We saved every dime from my pay. My job is laying people in my dept every week.
To help,
" can you request that future dedt from the lender be added"
If you lose your home to foreclosure and it sells for less than what you owe, you will be responsible for the deficiency. If you cannot pay the deficiency, the lender may either forgive it or can come after you to collect it. However, not sure what you intend to mean by the statement quoted above. How can the deficiency be added and what should it be added to?
To Stressed,
The lender can come after the deficiency from the foreclosure sale of the home. They can get a deficiency judgment against you and can come after your other assets. Lenders come after your bank accounts as a last resort to recover the deficiency. However, to be on the safer side, I think you can take your money out of the bank account. If your lender is yet to foreclose the property, you can talk to the loss mitigation department of your mortgage company and check out if you can deed in lieu the property to the lender. In most cases, the lenders forgive the deficiency from the deed in lieu of foreclosure.
" can you request that future dedt from the lender be added"
If you lose your home to foreclosure and it sells for less than what you owe, you will be responsible for the deficiency. If you cannot pay the deficiency, the lender may either forgive it or can come after you to collect it. However, not sure what you intend to mean by the statement quoted above. How can the deficiency be added and what should it be added to?
To Stressed,
The lender can come after the deficiency from the foreclosure sale of the home. They can get a deficiency judgment against you and can come after your other assets. Lenders come after your bank accounts as a last resort to recover the deficiency. However, to be on the safer side, I think you can take your money out of the bank account. If your lender is yet to foreclose the property, you can talk to the loss mitigation department of your mortgage company and check out if you can deed in lieu the property to the lender. In most cases, the lenders forgive the deficiency from the deed in lieu of foreclosure.
I have an investment property (condo) in Florida with two mortgages attached to it. I attempted a short sale - the lenders accepted the sale but wanted me to be responsible for the difference between the sale and the loan amount, the primary lender (Flagstar bank) wanted to place a lien on my primary property for a part of the difference. I did not accept their offer and stopped making payments (I had been current before they rejected the shortsale). I have not been served foreclosure papers yet. I have asked them for a principal reduction or loan modification but they have refused. Any suggestions? How likely is it that they will pursue a deficiency judgement against me and garner wages etc? :cry:
Is there a time limit for a lender or HUD to file a defiency judgement against you after the property has sold? How would you find out if a defiency waiver has been filed against you?
On commercial property the lender obtained judgment for full payment of note 25 years early due to one late payment after 4 years of which was paid a few weeks late.
Anyhow, there are 2 partners and each live in separate state other than where the building is located and the judgment was given.
Negotiations with bank are in place however it seems the bank will not budge on anything.
One partner lives in FL and the other in CA with each signing a separate personal guarantee.
The lender has not agreed to any settlement and wants full pay-off.
With silence now from the lender for a few weeks after a some offers were given to them from debtors, is it safe to assume they are organizing collections?
Does the lender have to obtain a separate judgment for freezing personal bank accounts or would the original judgment suffice which gave them the judgment?
How soon, once a freeze judgment is given if required, can the collection agency or lender freeze accounts and also wage garnish when the accounts, employer, and debtor is living in Ca and FL when the lender and judgment is in Alabama?
The partners have the ability to continue to make payments as always however the bank wants all now and that is impossible.
We do not want to file BK however it might be best for the partner living in Ca.
Any suggestions would help. Thank you.
Anyhow, there are 2 partners and each live in separate state other than where the building is located and the judgment was given.
Negotiations with bank are in place however it seems the bank will not budge on anything.
One partner lives in FL and the other in CA with each signing a separate personal guarantee.
The lender has not agreed to any settlement and wants full pay-off.
With silence now from the lender for a few weeks after a some offers were given to them from debtors, is it safe to assume they are organizing collections?
Does the lender have to obtain a separate judgment for freezing personal bank accounts or would the original judgment suffice which gave them the judgment?
How soon, once a freeze judgment is given if required, can the collection agency or lender freeze accounts and also wage garnish when the accounts, employer, and debtor is living in Ca and FL when the lender and judgment is in Alabama?
The partners have the ability to continue to make payments as always however the bank wants all now and that is impossible.
We do not want to file BK however it might be best for the partner living in Ca.
Any suggestions would help. Thank you.
GMAC denied my loan modification in (2008) because they said i made too much money. my question is what are the income limits in florida? someone told me to work less hours during the modification process(to show less income) please advise as GMAC would not tell me the income parameters.
Hi what next,
The eligibility parameters to qualify for a loan modification do vary from one lender to another. It also depends on a borrower's particular situation. So, it is hard to say what parameters GMAC use to determine if you qualify for the loan modification. However, generally lenders check your debt to income ratios i.e. how much of your income you are paying towards your mortgage and also towards your other revolving debts like credit cards.
Hi concerned,
I'm not sure why the lender wants you to repay the loan in full just because you had one late payment. It is in deed impossible to come up with such huge amount within a short span of time. It is not certain if the lender would accept the offer you and your partner made to them. The decision is completely up to them. The lender will most likely be required to obtain a judgment to freeze your personal bank accounts and to garnish your wages. Once a judgment is entered and the court grants the permission to freeze the account or garnish wages, it will not take long for the lender to do so.
The eligibility parameters to qualify for a loan modification do vary from one lender to another. It also depends on a borrower's particular situation. So, it is hard to say what parameters GMAC use to determine if you qualify for the loan modification. However, generally lenders check your debt to income ratios i.e. how much of your income you are paying towards your mortgage and also towards your other revolving debts like credit cards.
Hi concerned,
I'm not sure why the lender wants you to repay the loan in full just because you had one late payment. It is in deed impossible to come up with such huge amount within a short span of time. It is not certain if the lender would accept the offer you and your partner made to them. The decision is completely up to them. The lender will most likely be required to obtain a judgment to freeze your personal bank accounts and to garnish your wages. Once a judgment is entered and the court grants the permission to freeze the account or garnish wages, it will not take long for the lender to do so.
Hi,
I went thru a short sale, the 1st lender forgave the debt and issued a 1099c, the 2nd did not...Wachovia ..I had my checking account with them as well, they drained it of every dime a few weeks ago...Ive had to borrow money from my family to survive...Is it likely they will be seeking a deficiency judgement next??!!!
Thanks
I went thru a short sale, the 1st lender forgave the debt and issued a 1099c, the 2nd did not...Wachovia ..I had my checking account with them as well, they drained it of every dime a few weeks ago...Ive had to borrow money from my family to survive...Is it likely they will be seeking a deficiency judgement next??!!!
Thanks
When she received a notice this past weekend while in my presence from plaintiff's attorney advising of a motion for default judgment, a friend confessed that she has been negligent for well over a year concerning her certain foreclosure, and pleaded for any assistance I could offer, and so here goes... (The motion was filed in a Florida court on Feb. 25th)
Does the fact that her proceedings have reached this stage preclude any possibility of seeking a DIL from the lender? In what time frame can she expect to be evicted from the property if she continues to disregard the matter? Can she expect a deficiency judgment after the foreclosure sale falls far short of the indebtedness? She has no real property or assets against which liens could be attached, nor any income in the United States. But as she holds dual citizenship, she does have real property and bank assets in her home country of Costa Rica. What is the risk that the creditor could attach these?
Does the fact that her proceedings have reached this stage preclude any possibility of seeking a DIL from the lender? In what time frame can she expect to be evicted from the property if she continues to disregard the matter? Can she expect a deficiency judgment after the foreclosure sale falls far short of the indebtedness? She has no real property or assets against which liens could be attached, nor any income in the United States. But as she holds dual citizenship, she does have real property and bank assets in her home country of Costa Rica. What is the risk that the creditor could attach these?