What is a deficiency judgment?
When a person allows a lender or bank to foreclose on his or her home in
order to settle a debt, there sometimes is an amount of debt left over that the
foreclosure did not satisfy. When the
foreclosure process is complete and the home that the bank has taken back has not
fully settled the debt, the bank or lender will pursue a
deficiency judgment. A deficiency judgment is just as it sounds. A lender will file a suit
against the borrower if the amount of the loan repaid was insufficient
or not the full amount as signed on the promissory note.
When a lender pursues a deficiency judgment, he or she can also use this
to put a lien on the borrower's other properties, such as a vacation
home or vehicle, to help repay the difference. It essentially gives the
lender the legal right to collect the remainder of the debt. If you have
been notified of a deficiency judgment from your lender or you are in
the early steps of foreclosure and wish to avoid a deficiency judgment,
please do not wait another minute longer to call a foreclosure defense
attorney from LeavenLaw.
At our office, we are extensively knowledgeable with all bankruptcy and
foreclosure legal matters as it will relate to your case. We have assisted
dozens of clients with their foreclosure defense and bankruptcy needs,
Chapter 7 and
Chapter 13 bankruptcy. It is important to speak with your legal representation immediately
after being notified of foreclosure, because
you will only have 20 days to respond. With a quick response, you and your Florida foreclosure defense
attorney can stretch the foreclosure process possibly over a year, giving
you the time you need to get together or begin to repay any necessary expenses.
If you wish to learn more about deficiency judgments and how our firm can
help you fight during foreclosure, please call us today. We offer a complementary
case evaluation for all future clients throughout St. Petersburg and the
rest of Florida. All consultations are held in confidence and can provide
you with the information you need to find a favorable outcome in your case.