How can we find out if a foreclosure of our FL home will have a deficiency judgment?

We rent out the house and live in another state. We are concerned about what the mortgage company would be able to take from us other than the house if a foreclosure happens?
For example: bank accounts, paychecks, future annuity payments, or any thing else owned?
We are not financially able to continue making payments long term but are current with payments at this time. We have also tried selling but with no luck.
We are a married couple but only one of us on the deed, if this makes any difference.

By | 2013-08-26T23:18:56+00:00 August 26th, 2013|Mortgages Home Loans Interest Rate|4 Comments

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4 Comments

  1. Confused August 27, 2013 at 1:20 AM - Reply

    I am also getting ready to start the foreclosure process. My adjustable mortgage is coming due and I can not refinance as my house is now worth $60K less then what it appraised for last year. I think it is time to cut my losses and get out of it now. I have never made a late payment but in order to get my mortgage company to work with me at all it seems I have to default. I know this will really affect my credit. Tough spot since i have worked hard to keep everything in order. From what I have researched ….the banks will not go after any assets. They also tend to stay away from deficiency judgements. It looks like aside from the terrible mark on your credit that is the worst that will happen. I would like to though find out more info about the process itself…do you just mail your keys to your bank? LOL you can email me at andrstpi@yahoo.com…maybe we can share info. Thanks.

  2. foreclosurefish_com August 27, 2013 at 12:28 AM - Reply

    You can only find out once the foreclosure has already gone through. You can’t find out before the sheriff sale of the property, because the bank and county do not know how much the property will sell for.

    They know how much the judgment is against the you, which is why they are selling the house. But if it sells for more than enough to cover the amount of the mortgage, then the bank has absolutely nothing to sue you for.

    So you have to wait for the sheriff sale of the house to find out if a deficiency judgment is even a possibility. If the home sells for less than the total amount that you owed, which is entirely probable, then you will have slightly more to worry about. The bank may be able to sue you after the foreclosure for the difference between what they were owed and how much the house sold for.

    But why would they bother to sue you again? You didn’t pay the monthly mortgage, you didn’t sell or refinance to get out of the foreclosure judgment, and the county government had to force your home to be auctioned off. Those aren’t the actions of a person who has the financial ability to pay tens of thousands of dollars in further judgments after foreclosure.

    Don’t take that as a personal judgment against you — foreclosure happens because people run into financial hardships all the time. But from the bank’s perspective, that hardship protects you from them trying to go after even more of your resources. They will have to hire local attorneys again to initiate another lawsuit against you for the deficiency, then they’ll have to try to collect on it, and you didn’t pay them back the loan and judgment they had to begin with.

    For that reason, nearly all banks do not bother with deficiency judgments. Takes too long and costs too much to collect too little. They almost never sue for another judgment after foreclosure. Not even on second homes in other states.

    Hope that helps.
    ForeclosureFish

  3. MoneyMonkey August 27, 2013 at 12:05 AM - Reply

    The mortgage company can come after you for the difference between what they sell it for and what you owe, and they can take just about anything. You don’t want the Lender to be the Seller. You can try to negotiate a short sale, or a refinance, but otherwise drop that price to get it sold! Even if you have to borrow money to sell the house, get it sold.

    Others … being a landlord from another state is not something you ever want to do! Sell, sell, sell.

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