As one of Florida's experienced real estate and foreclosure defense attorneys I am quite concerned about some of the misinformation being provided to Florida homeowners regarding Florida foreclosures and Florida short sales and realize it is a subject that needs to be immediately addressed.  

It seems that many self proclaimed short sale experts are suggesting that there is no difference between a Florida foreclosure or a Florida short sale. Although the thought process may be somewhat technically correct, it is not correct in the State of Florida. It does however apply to states described as "Non-Recourse" states. Florida is not  one of those states and is in fact a RECOURSE state, meaning the banks can and will likely come after you for the difference between the principal value of your Florida mortgage and the value of the home at the time of the Florida foreclosure sale.

In non-recourse states, like California the banks cannot come after you. However, in Florida, New York and other recourse states the banks can come after you for as long as 20 years! The banks have the right to try and garnish your wages and bank accounts and even depose you under oath. In fact they can and will likely come after you even if you are long dead.

I also continue to hear from many clients that their real estate salesperson or some self proclaimed short sale expert offering their assistance claims that they'll likely be released from the amount the bank does not recover at closing. Since I've literally handled hundreds upon hundreds of Florida short sales I can assure you that it is not likely and in most cases the bank actually reserves their right to pursue a deficiency.  As a matter of fact Bank of America's standard short sale approval clearly states in part that they may pursue a deficiency!

"BAC Home Loans Servicing, LP and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above."

So, if you are considering a Florida short sale, I highly recommend that you consult with an experienced Florida foreclosure and real estate attorney before you proceed!

So, why bother going through the hassle of a short sale? There are a number of reasons including your credit rating and your ability to obtain a new mortgage in the near future, something I will address at a later date. However, for this writing, the fact that you could be subjected to a substantial deficiency (the difference between what the property was sold for and what you owe) should be motivation enough!

In closing, a short sale is much more complicated than an average real estate sale, making it extremely important to retain an experienced Florida foreclosure and real estate attorney to oversee and negotiate the transaction.

Get legal advice, understand your rights, and know your options.

DISCLAIMER: This document is designed for general information only. The information presented in this document should not be construed to be formal legal advice nor the formation of an attorney-client relationship.