Deficiency Judgments

You may believe that when a bank forecloses on your home, your legal ordeal is over and you can simply walk away and start the process of rebuilding your finances. Unfortunately, Florida is one of several states that allow something called a deficiency judgment. A deficiency judgment lets a bank come after you to obtain money to cover any outstanding money due that is above and beyond what they collected from a foreclosure sale.

Deficiency judgments can have a major adverse impact on your finances. You will not only have a judgment on your public record and credit report, you will also be expected to pay a significant sum of money to the bank.

At the Law Offices of Evan M. Rosen, our Hollywood and Fort Lauderdale lawyers help clients defend against foreclosure. When clients owe more money to the bank than the home si worth, we have been successful in helping with alternatives to avoid deficiency judgments. If you have already went through foreclosure and are now facing a deficiency judgment proceedings, we have experience defending clients in that process as well.

No matter what stage of the foreclosure process you are in or whether you already have a judgment against you, our aim is to put your needs first and help you to resolve your case with the bank once and for all. Our firm philosophy is, above all, is to treat you like we would want to be treated and to treat your case as if it was our own.

You are welcome to read more about deficiency judgments below or you can contact us now for a consultation by calling 754-400-5150 or by filling out our online form.

Understanding Deficiency Judgments

States are divided into “recourse” states and “non-recourse” states. Florida is a recourse state, which means that a mortgage lender has the option to take legal action if the money obtained in a foreclosure is not enough to pay all money owed. For example, let’s say a bank obtains a foreclosure judgment which indicates they are owed $100,000. But, at the time of the foreclosure sale, the property is only worth $80,000. The holder of that judgment can sue you for $20,000.

The time in which a bank can pursue you for a deficiency is not clear and is something you should discuss with a competent attorney. Most banks will pursue these judgments immediately as part of the foreclosure action but it is also possible for banks to file separate lawsuits with the court seeking a money judgment for the amount of the deficiency.

If the bank obtains judgment, that can stay on your public record for up to twenty years. During this time, you may not qualify for certain jobs which require a clear financial background. It can also make it more difficult, if not impossible, to get credit at a good rate, especially in the years after the judgment happened.

In addition to having the judgment on your record, debt collectors can come after you for payment. If you do not pay, then additional legal action might be taken including, in some cases, garnishment of your wages and/or loss of possession of your personal property pursuant to a writ of execution and levy.

What to do About Deficiency Judgments

Whenever possible, it is a wise choice to take steps to prevent deficiency judgments before your foreclosure action is final. At the Law Offices of Evan M. Rosen, our foreclosure defense attorneys will help you to explore alternatives such as obtaining a waiver of deficiency as part of a deed-in-lieu of foreclosure, cash-for-keys, consent judgment, or a short sale. Not only can these resolutions help you to avoid a deficiency judgment, but they may also be better for your credit and you could walk away with cash through various incentive programs intended to encourage people to pursue foreclosure alternatives.

If you have already had your home foreclosed on and the bank is pursuing a deficiency judgment, the Law Offices of Evan M. Rosen can represent you in that court action. There are defenses pertaining to the valuation of the property at the time of sale, standing, and more that we have used to help defeat deficiency claims. We have even filed suit in federal court against entities that attempt to seek the wrong amount of deficiency. 

Contact Our Fort Lauderdale and Hollywood Foreclosure Defense Attorneys Today

No matter what your situation, we will listen to you, review your case, and do all we can to treat you the way we would want to be treated. Contact us today at 754-400-5150 or through our online form to schedule a consultation to learn more.

Let the lawyers and staff of the Law Offices of Evan M. Rosen serve you!