Deficiency Judgments in Florida
Call a St. Petersburg Foreclosure Attorney for Experienced Guidance
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.
What to Know about Florida Deficiency Judgments
In Florida, foreclosures are judicial, which means that a lender has to
obtain one by going through state court. In other states, the lender does
not have to go through a court and can simply obtain a foreclosure.
Learn more about Florida and deficiency judgments:
Florida allows deficiency judgments: If the borrower was personally served with a foreclosure complaint, deficiency
judgments may be obtained by the lender. The lender also has the option
to file a separate lawsuit for deficiency, unless the court says otherwise.
The deficiency judgment amount is determined by the judge: While there is some flexibility in the deficiency amount, it cannot typically
exceed the difference between the judgment amount and fair market value
(in regards to the date of sale).
Requesting a deficiency judgment has a time limit: A lender only has one year to seek a deficiency judgment for a residential
property with a maximum of four dwelling units.
Call LeavenLaw for a Free Consultation Today!
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.