Even after losing your home to foreclosure, the lender or a debt collector may come knocking at your door, looking for money. I recently read an article on how deficiency judgments in Lee County are on the rise. However, people need to know that this is true statewide and nationally, too.
These judgments come after a foreclosure sale. Armed with them, lenders in Florida have the legal right to collect.
With new foreclosure filings slowing lenders now have more time to focus on the deficiency judgments. The bank has one year to file a motion for a deficiency judgment after a foreclosure sale. But it also has up to five years to file a new lawsuit, seeking a deficiency amount.
Nationally, investors and debt collectors are buying up these deficiency judgments for pennies on the dollar and going after borrowers. It's going to be the next wave, although a lot of people think it's not coming; believe me, it is.
With a deficiency judgment, the lender or whoever buys it can go after the debt for 20 years. Homeowners need to understand that with a deficiency judgment, the bank can garnish your wages, seize your bank accounts, seize your car and make your life miserable.
As a leading foreclosure defense attorney in Florida, I've consulted with many homeowners in the state who are facing deficiency judgments. The best way to avoid such judgments is to fight a foreclosure every step of the way, and not to just allow a bank to take your property. There are defenses and plenty of them.
A short sale if often the best answer. With a short sale, the property is sold to a buyer for less than the mortgage amount, and as an experienced Florida foreclosure defense attorney I can usually negotiate an agreement with the lender and prevent any future deficiency.
You walk away. You're done.
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.