Florida Mortgage Foreclosure Deficiency Judgments

foreclosure sign stating real estate for saleResidents of Florida should be aware that there are companies out there that purchase thousands of mortgage foreclosure judgments in our State in order to sue homeowners for a deficiency judgment after their home is foreclosed. After the loss of your home, it can be overwhelming to face a judgment against you for thousands of dollars.

The foreclosure process involves two primary steps. The first step is the lender filing the foreclosure lawsuit seeking a judgment allowing the lender to foreclose and sell the property. The lender’s judgment provides that the court mayl enter a deficiency judgment after the foreclosure sale has been completed if the property is sold for less than the amount of the judgment. This is often a significant amount of money.

The “Florida Fair Foreclosure Act,” gives some assistance to foreclosed homeowners. For lawsuits filed before July 1, 2013, a party seeking a deficiency judgment after foreclosure must bring the claim the earlier of five years after the action accrued or no later than July 1, 2014.

Parties seeking a claim for a deficiency judgment after a foreclosure sale of one to four family residential properties in lawsuits filed after July 1, 2013, must file the claim within one year from the day after (i) the certificate of title is issued, or (ii) the lender accepts a deed-in-lieu of foreclosure.

If you are facing the foreclosure of your home or other real property, and a potential deficiency judgment, it may be time to consider your bankruptcy options. Filing a personal bankruptcy case may help you eliminate the full amount of the deficiency balance after the foreclosure of your home. Let us help you.

Please keep in mind that every matter is different. If you have questions about filing for bankruptcy protection and you would like to schedule a no-cost consultation, please contact our office by completing the form on this website or calling us at (954) 280-5066.

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