Posted on: 01st Jun, 2009 05:31 pm
I've been reading lots of different info...If we sell our home in Fl in a short sale, can the lender pursue us for a deficiency judgment. We do have a financial hardship, but are worried that later in a few years when things are better, we will have this pop back into our lives!! If so, what is the time limit?
Hi
As far as I'm aware of, there is a statute of limitation in Florida that sets the time limit to a maximum of 5 years for lenders to file a lawsuit for deficiency judgment. If they fail to do so within the specified time of 5 years, the borrower cannot be held responsible for the deficient amount. You can also discuss this with your lender and settle for an amount less than the actual deficiency.
As far as I'm aware of, there is a statute of limitation in Florida that sets the time limit to a maximum of 5 years for lenders to file a lawsuit for deficiency judgment. If they fail to do so within the specified time of 5 years, the borrower cannot be held responsible for the deficient amount. You can also discuss this with your lender and settle for an amount less than the actual deficiency.
Thank you. Does anyone know the best way to approach this discussion with the lender? I tried to ask about this and they said they would have the right but wouldn't say if they would.
If you participate in a short sale no deficiency Judgment will occur, that is the lender will not have a judgment immediately after the sale that they can use to garnish wages or banking accounts or attach other assets. A deficiency Judgment comes at the end of foreclosure or collection litigation, it should also be noted that some states do not allow Deficiency Judgments and you can check on such at our web site look for state foreclosure laws tab. A deficiency for a short sale and the borrowers ultimate responsibility for it is subject to negotiation with the lender see above response.