Results 1 to 2 of 2

Hybrid View

  1. #1

    Default Delayed Deficiency Judgements

    If the bank forecloses on property (in FL) and gets very low offers at auction, so low they decide to hold it until the market gets better, am i still liable for a deficiency judgement if the bank sells the property years later for less than the mortgage amount. In other words is there any time window after which you can no longer be liable?

    On a 120,000 mortgage how likely is it that the bank would hold it if the best offer (currently) at an auction was only 50-60K. FYI - its a condo so upkeep and maintenaince would be far less than a home. Does anyone know if banks are holding properties longer (in order to recoup more later) now that the market is so bad in FL.

    PS - i know there is a time window for the bank to pursue the deficiency judegement against me or they loose the opportunity to do so, i am not confusing this with that issue.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Delayed Deficiency Judgements

    If this was a judicial foreclosure, the order of foreclosure should indicate how the sale of the property is to be conducted. Check to see if the order was followed. If not, if and when the bank requests a deficiency judgment from the court, object on the basis that the sale was improperly conducted. Even if not, with a delay causing a reduction in the sale proceeds, you can still object, or attempt to use that as a defense (e.g., "failure to mitigate damages") in any separate lawsuit to recover the deficiency:
    Quote Quoting [FONT=Verdana
    Florida Statutes Sec. 702.06 - Deficiency decree; common-law suit to recover deficiency.]In all suits for the foreclosure of mortgages heretofore or hereafter executed the entry of a deficiency decree for any portion of a deficiency, should one exist, shall be within the sound judicial discretion of the court, but the complainant shall also have the right to sue at common law to recover such deficiency, provided no suit at law to recover such deficiency shall be maintained against the original mortgagor in cases where the mortgage is for the purchase price of the property involved and where the original mortgagee becomes the purchaser thereof at foreclosure sale and also is granted a deficiency decree against the original mortgagor.
    [/font]

    1. Sponsored Links
       

Similar Threads

  1. Foreclosure: Deficiency Judgements in Florida - Are They Real
    By iluvteak in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 09-08-2009, 10:40 AM
  2. Foreclosure: Deficiency Judgements in Florida
    By iluvteak in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 05-16-2009, 07:59 AM
  3. Business Issues: LLC's and Judgements
    By ladygreen in forum Business Law
    Replies: 1
    Last Post: 11-24-2008, 02:41 PM
  4. Foreclosure: Florida Deficiency Judgements
    By inbigtrouble in forum Buying, Selling and Conveying Real Estate
    Replies: 4
    Last Post: 09-27-2007, 06:50 AM
  5. Foreclosure: Caps on Florida Deficiency Judgements
    By cwjr1835 in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 05-15-2007, 08:37 AM
 
 
Sponsored Links

Legal Help, Information and Resources