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  1. #1

    Default Florida Deficiency Judgements

    1) Is there any cap on deficiency judgements in FL from mortgage foreclosure?
    2) Does it stay on your record permently?
    3) Can you get another loan with a deficiency Judgement on your record?
    4) If you have a 1st and 2nd Mortgage on a property is there any benefit to continue to pay one of the loans if you can? (e.g. if the 2nd is for a smaller amount, are you any better off continuing to pay only 1st mort. and let 2nd foreclose?)

    FYI - this is for an investment property in FL not primary residence. I can't afford to hold on to it. The value is 75% of what I paid and the rent only covers 50% of the total expenses. I have depleted all savings covering the other 50% for last 2 years. I don't make enough to cover it. I have tried short sale - no offers.

  2. #2
    Join Date
    Sep 2005
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    Default Re: Florida Deficiency Judgements

    1. Not unless the lawsuit is limited to in rem relief, such as where the customer is in bankruptcy or is deceased.

    2. No, but it will stay on your credit report for many years.

    3. Yes, but it can be difficult to find a lender and don't count on favorable terms.

    4. Foreclosure is foreclosure, and the foreclosure of one mortgage will likely result in the foreclosure of the second. Even if you make payments, your loan contract probably provides for foreclosure to protect the lender's interest in the property in the event of the foreclosure of the other loan.

  3. #3

    Default Re: Florida Deficiency Judgements

    Can you elaborate on your answer to #1. Your answer suggests to me that if i declare BK before foreclosure, then the deficiency jusdgement might be caped/limited? If i interpreted correctly, is there any way to get an idea how much the cap would be (e.g. on % basis?)

  4. #4
    Join Date
    Mar 2005
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    Michigan
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    28,906

    Default Re: Florida Deficiency Judgements

    If you declare bankruptcy, it may be possible to have the value of the mortgage "crammed down" to the value of the property. Similarly, a deficiency judgment should be dischargeable. If you are considering bankruptcy, it's time to consult a bankruptcy lawyer for an evaluation of your situation.

  5. #5

    Default Re: Florida Deficiency Judgements

    Interesting reply aaron. when you say a deficiency Judgement may be dischargable - what does that mean exactly? That you don't have to pay it?

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