Foreclosure, Short Sale… you could be faced with thousands of dollars in debt!

Unlike California, Florida does not have an anti-deficiency law. You may face hundreds of thousands of dollars in debt from a deficiency judgment if you let the bank foreclose or did not get a waiver of deficiency when you closed a short sale on your property.

The "deficiency" is simply the difference between the amount of the sale price and the amount of the loan balance. It is up to the bank to see if this amount is forgiven or not. The banks are currently awash in mortgage foreclosures so the process of pursuing a deficiency judgment has taken a back seat for now on these first mortgages. In my experience, these deficiency rights will be sold to third parties.  These third parties will pay pennies on the dollar to receive these rights and will hound you to collect.

However, if you have a second mortgage, the banks do not have to foreclose on the property but will sue you for the amount owing just like a lawsuit to collect on a delinquent credit card.  Carman Law Firm, P.A. has been receiving more and more calls from people who lost real estate to foreclosure or short sale and now face collection actions from the lender for money. When we meet with these people, we are able to determine whether such a debt is collectable, and if so offer advice on how to handle collection efforts. If such a debt is not legally owed, we can represent that borrower and let the lender know that any further collection actions will be met with legal action under the state and federal debt collection laws. If such a debt is collectable, we will offer advice and representation through bankruptcy (as a last resort), debt settlement, or litigation defense.

In closing, one point that is important to take away from this article is that legal advice and representation with regard to liability for deficiency after a foreclosure or a short sale is better when obtained well in advance of the foreclosure or short sale. The reason to seek legal help prior to foreclosure or a short sale is that negotiating down a legally owed debt or defending a valid lawsuit is much more difficult than taking preemptive steps to avoid the debt. For example, under some circumstances the short sale process may avoid deficiency actions.

It is time to discuss your rights and liabilities with the Carman Law Firm.

The Carman Law Firm can assist those in need of  debt and mortgage relief.  With many options available and trusted answers to questions that someone might have about regarding  credit card debt,  short sales,  loan modification,  foreclosure and  strategic default. 

Begin protecting your family today; Call the Carman Law Firm  at 1-800-763-0775 or email us at  info@carmanlegal.com, get answers you need and schedule an informative and free comprehensive consultation on how the Carman Law Firm can help you.