Foreclosure defense is a very demanding and intricate process. A foreclosure defense attorney must understand and implement multiple fields of law including, but not limited to: real property and litigation law. Failure to have such experience and knowledge may lead a homeowner into being required to pay what the bank, even after the bank has foreclosed and even sold their home. Such payment is commonly known as a deficiency judgment.
A deficiency judgment may be due to a lender if the total amount a homeowner owes on the loan exceeds its ultimate sales price upon foreclosure. It is important to have knowledgeable counsel help in your foreclosure defense in order to ensure that you remain in your home and are not assessed a deficiency judgment.
In Florida, the deficiency judgment may be due when a home is foreclosed on, or when sold and the amount of the sale is not enough to cover the bill of the entire loan. In other words, the fair market value of the property exceeds the cost of the loan. The “deficiency” is the amount of the difference between the sales price and the loan. For instance, if the loan amount is $200,000 and the home is sold for $175,000, then the deficiency judgment would be $25,000.
In Florida, lenders must seek court approval for a deficiency judgment within their foreclosure proceedings. The statute of limitations for a lender to seek a deficiency judgment was reduced from five years to one year in 2013. Whether or not a court will approve a foreclosure deficiency judgment depends on the strength of a homeowner’s defense. This is the reason why it is imperative that homeowners in foreclosure employ the efforts of an experienced foreclosure attorney to aid in their defense.
Contact the attorneys of The Ticktin Law Group to assist you with foreclosure defense action. Our experienced attorneys offer complimentary legal consultations to go over the facts of your case and to determine if foreclosure defense is the right option for you. Call (561) 232-2222 or complete our contact form here.