Posted on: 25th Oct, 2009 08:10 am
I have a home in florida which is currently not worth anything due to construction defects and is now sinking. If a receive a small judgement from their insurance company and use that money to buy a new primary residense in Arizona (I cannot afford local prices) and let my Florida home go via Deed-in-lieu: can they come after my home in Arizona for a deficiency judgement?
Thanks....BHB
Thanks....BHB
Hi BHB,
They will not be able to foreclose on your new house in Florida, but they may put a lien on the property. Since your current house is not worth much due to constructional defects, there will remain a huge deficiency, I guess. In that case, the lender may sue you, obtain a judgment against you and put lien on your property in Arizona. However, in a deed in lieu (DIL) the deficiency is generally forgiven by the lender. You can also consult foreclosure attorneys in Florida and check out if you can get protection against deficiency judgments under anti-deficiency laws.
They will not be able to foreclose on your new house in Florida, but they may put a lien on the property. Since your current house is not worth much due to constructional defects, there will remain a huge deficiency, I guess. In that case, the lender may sue you, obtain a judgment against you and put lien on your property in Arizona. However, in a deed in lieu (DIL) the deficiency is generally forgiven by the lender. You can also consult foreclosure attorneys in Florida and check out if you can get protection against deficiency judgments under anti-deficiency laws.
they can go after any unencumbered assets. They may find off limits assets that are jointly held by you and your spouse, and certain assets needed for you to survive and perform your job. But a wage garnishment, or asset sesure are both possible as are leins on real estate and interception of tax refunds, to name a few.
loanday123 - Please clarify what assets they may go after. We are retired and our only source of income is Social security. Our only visible assets (after we buy the home in Arizona) will be a 2002 pick-up and our household furnishings.
Hi BHB,
The lender can go after your assets like your savings accounts, your cars etc. However, lenders do not generally go after such assets. The lenders consider this as their last option. Insofar as your social security income is concerned, they are exempt from collections. Your lender cannot go after it to recover their deficiency. They will also not be able to foreclose on the house you wish to purchase.
The lender can go after your assets like your savings accounts, your cars etc. However, lenders do not generally go after such assets. The lenders consider this as their last option. Insofar as your social security income is concerned, they are exempt from collections. Your lender cannot go after it to recover their deficiency. They will also not be able to foreclose on the house you wish to purchase.