Another WARNING to Florida Homeowners about Deficiency Judgments

Homeowners considering a short sale should be mindful that most real estate salespeople and self-proclaimed short sale experts do not warn a homeowner of the risks involved with a short sale.

Click here and read "What you need to know BEFORE hiring a Realtor to do a short sale of your property."

Take the advice of an experienced Florida foreclosure defense lawyer; the real danger in any short sale is in fact the deficiency judgment.

In Florida, if the lender does not release you in writing from any future deficiency, the lenders have up to five years after the short sale has taken place to apply to the Court for a deficiency judgment. The judgment amount could be the difference between the short sale price and the amount you actually owed the lender, which in many cases is quite substantial. This applies to your 1^st, 2^nd and 3^rd mortgage, should you have one.

Once a deficiency judgment is awarded, it is often sold to debt collectors. A bank will walk away rather than spend money to collect a debt that will force the borrower into bankruptcy.

Quietly, many investors are buying up these deficiency judgments at pennies on the dollar. These investors tend to be very aggressive and look to recover a higher rate of return than the larger institution and are willing to put the effort in to collect.  

Judgments in Florida are good for 20 years. Judgment holders can force people into court every year to disclose their finances. They can seize bank accounts, assets, garnish wages, even the family dog (its considered property under Florida law).

The best way for homeowners to protect themselves is to hire an experienced Florida foreclosure defense lawyer to negotiate a waiver of the deficiency judgment .

If you are facing a foreclosure in Florida or are considering a loan modification, short-sale, strategic default or other options, contact the Carman Law Firm, P.A. for a confidential appointment to discuss your options. Call (561) 392-7031.