In a mortgage foreclosure deficiency lawsuit, the bank sues the homeowner for the amount due on the mortgage loan after the foreclosure ends. A new Florida law relating to deadlines for mortgage foreclosure deficiency judgments brings good news to Florida homeowners who have lost their home in foreclosure in recent years. A mortgage foreclosure deficiency judgment is a major threat to a home owner’s financial well-being, even forcing a homeowner into bankruptcy. Under Florida law, the deficiency judgment is the difference between the total mortgage debt and the fair market value of the house when it is sold. Even after the homeowner loses their house in foreclosure, they still owe the bank for the balance of the mortgage loan debt, if the value of the house was not enough to pay off the debt. For many “underwater” homeowners in Florida, this difference can be significant.
Are you an Orlando homeowner in foreclosure? Are you trying to short sale your home? Then you should hire an attorney to help you defend the foreclosure. Here are the reasons why:
REASON 1: You are more likely to get a better short sale deal if you are defending the foreclosure with an attorney. This is negotiation 101. You want something and the bank wants something. You want to get rid of your underwater house without a deficiency debt obligation. The bank wants to avoid a lengthy and costly mortgage foreclosure law suit.