Foreclosure - Deficiency Judgements
A deficiency judgment is a judgment ordered by the court granting a bank the authority to collect the amount of money that is still owed by the borrower on a mortgage after the property is sold at a foreclosure auction. Since Florida has one of the highest foreclosure rates in the United States, Florida homeowners will be impacted more than most by this issue.
As a result of the great recession, property values were reduced to a level below many mortgage balances. That reduction in value is the deficiency that banks seek to collect. A possible benefit of defending the foreclosure is to negotiate the waiver of a deficiency judgment. Also, the discovery that fraudulent documents were filed in foreclosure cases has provided former homeowners an opportunity to defend themselves against lender’s attempts to pursue a deficiency judgment against them. Now it may be possible to re-open old foreclosure cases and to set aside foreclosure judgments. By doing so, a lender may, among other things, lose their right to pursue a deficiency judgment against the former homeowner. So, even if you have already lost your home, we still may be able to help you.
Therefore, if you have been served with a foreclosure lawsuit, or are in the middle of a foreclosure, don’t just walk away from your home. You need to discuss your circumstances with an experienced real estate lawyer. An experienced real estate lawyer should be able to offer you valuable advice on your rights relating to deficiency judgments.