Posted on: 19th Dec, 2008 08:48 pm
Hi,
Can you tell me what the deficiency law is in Florida? How are those laws affected by either foreclosure of deed-in lieu of foreclosure in FL? And does one have a lessened negative impact?
Thanks
Can you tell me what the deficiency law is in Florida? How are those laws affected by either foreclosure of deed-in lieu of foreclosure in FL? And does one have a lessened negative impact?
Thanks
Hi CC!
Welcome to forums!
Deficiency judgments are allowed in Florida. This means that the lender may sue the borrower to obtain a deficiency judgment in Florida. So if a borrower opts for a deed in lieu foreclosure, the lender may not forgive the deficient amount. The lender may ask you to pay off the deficient amount.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Deficiency judgments are allowed in Florida. This means that the lender may sue the borrower to obtain a deficiency judgment in Florida. So if a borrower opts for a deed in lieu foreclosure, the lender may not forgive the deficient amount. The lender may ask you to pay off the deficient amount.
Feel free to ask if you have further queries.
Sussane
My house went into foreclosure this year and a judgment was filed on me and my husband for over $300,000. On November 8, 2008, the bank sold the house for $109,900.00. What can I do to prevent them from coming after me for the difference, since my husband is disabled and can no longer work.
Hi Bonnie,
Lender will have the right to claim the deficient amount from you. But you can speak to the lender about the problems you are facing and negotiate with him. If the lender understands your situation, then he will forgive the deficient amount.
Thanks
Lender will have the right to claim the deficient amount from you. But you can speak to the lender about the problems you are facing and negotiate with him. If the lender understands your situation, then he will forgive the deficient amount.
Thanks
So in Fl they can pursue the deficentcy, but what about Fl being a non-recourse state?
Hi Jeanne,
As far as I know, whether a loan in recourse or non recourse is mentioned in the mortgage docs. If it is mentioned in your mortgage doc that loan is non-recourse, then the lender cannot sue you for the deficient amount.
Thanks,
Jerry
As far as I know, whether a loan in recourse or non recourse is mentioned in the mortgage docs. If it is mentioned in your mortgage doc that loan is non-recourse, then the lender cannot sue you for the deficient amount.
Thanks,
Jerry
in a forclosure situation, can the second mortgage holder come after you for dificiency in florida?
Hi darius,
As far as I know the state of Florida allows deficiency judgments. In that case, the second mortgage holder can definitely get a deficiency judgment against you. It is quite legal in Florida.
As far as I know the state of Florida allows deficiency judgments. In that case, the second mortgage holder can definitely get a deficiency judgment against you. It is quite legal in Florida.
Hi
In case of a foreclosure, the second mortgage holder can definitely obtain a deficiency judgment against you. This is allowed in the state of Florida. However, there are anti-deficiency laws as well, i believe. So, one needs to consult a lawyer to know under what situations one can avoid such judgment.
In case of a foreclosure, the second mortgage holder can definitely obtain a deficiency judgment against you. This is allowed in the state of Florida. However, there are anti-deficiency laws as well, i believe. So, one needs to consult a lawyer to know under what situations one can avoid such judgment.
don't answer with speculations you morons!
In any foreclosure FIRST demand that they produce the ORIGINAL MORTGAGE NOTE. Most can not and in that case they may not be able to move forward with the foreclosure.
Second. you can always file bankruptcy to get rid of the deficiency.
Second. you can always file bankruptcy to get rid of the deficiency.
Consult an attorny, In Alabama they can only make a judgement for deficiency of 'Fair Market Value', not the difference in the loan and what they sold it for. I would think FL is similiar.
i have a 1st 45000, 2nd 10700 with wamu- chase. can anybody tell me will they will come after my assets wether i file bk or not(florida)? should i just walk away? can anybody help
Hi chvster,
If you file Chapter 13 bankruptcy, then you would be given a repayment plan by the lender. You'll have to pay off the dues according to that plan within 3-5 years.
If you file Chapter 7 bankruptcy and reaffirm the loan, then you will have to make payments as you would become personally liable for the dues. If you do not reaffirm the loan, then you won't be liable to pay the dues but the lender would hold the lien on the property. He would sell off the property to recover his dues. But you won't be liable for the deficient amount.
If you file Chapter 13 bankruptcy, then you would be given a repayment plan by the lender. You'll have to pay off the dues according to that plan within 3-5 years.
If you file Chapter 7 bankruptcy and reaffirm the loan, then you will have to make payments as you would become personally liable for the dues. If you do not reaffirm the loan, then you won't be liable to pay the dues but the lender would hold the lien on the property. He would sell off the property to recover his dues. But you won't be liable for the deficient amount.
Own an upside down house in Fl. Owe 385k on first mtg, 100k on second mtg. Property worth 235k at best. non-resident, so this is investment property with renter in property to offset some of mtg costs. Lenders will NOT work with us to restructure (do not live in home; not yet behind in pymts). Running out of assets to continue payments (approx 4k/mo for both first and second mtg). Can we walk away? If deficiency judgment, how LIKELY is it they will come after assets (IRA, other rental property, stock acct) in another state?
Welcome Jim,
Walking away from the property will not be a good option as it will lead to a foreclosure which will badly affect your credit score. It will go down by 250 points. Also, you'll be responsible for paying the balance amount. If you do not pay the balance amount, the lender can garnish your savings account or place a lien on your other properties. However, he will not come after your retirement account or social security income. There are less chances that he will come after your assets in another state.
In my opinion, you can apply for a deed in lieu of foreclosure with your lender. You can surrender the property to the lender who will sell it off and recover the dues. However, you won't be responsible for paying the deficient balance.
Walking away from the property will not be a good option as it will lead to a foreclosure which will badly affect your credit score. It will go down by 250 points. Also, you'll be responsible for paying the balance amount. If you do not pay the balance amount, the lender can garnish your savings account or place a lien on your other properties. However, he will not come after your retirement account or social security income. There are less chances that he will come after your assets in another state.
In my opinion, you can apply for a deed in lieu of foreclosure with your lender. You can surrender the property to the lender who will sell it off and recover the dues. However, you won't be responsible for paying the deficient balance.