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Guest

I've been reading lots of different info...If we sell our home in Fl in a short sale, can the lender pursue us for a deficiency judgment. We do have a financial hardship, but are worried that later in a few years when things are better, we will have this pop back into our lives!! If so, what is the time limit?

Guest

We also just lost our primary residence...sold it in a short sale. Ocwen was our lender and told us they'd only give the 2nd 1,000. The second refused, but since the short sale basically covered our principal on the first Ocwen finally agreed to 4,000 to the second.They also agreed to allow the realtors 5% which they had previously said they would not do. I guess it has to do with how good the short sale offer is.
This was done in a last minute phone conversation 1 week before the auction of the home. The home was sold, yea. As you can see by my first question, we are also losing a home in FL, hoping we will not get hit by 3 mortgages for deficiency judgments down the road. We felt it was our best choice to avoid foreclosure. Hope we were right, anyway for now it feels good to have that home off our backs!!!!!

savior70 · Posted: Tue Jun 02, 2009 5:13 am Post subject:

Hi

As far as I'm aware of, there is a statute of limitation in Florida that sets the time limit to a maximum of 5 years for lenders to file a lawsuit for deficiency judgment. If they fail to do so within the specified time of 5 years, the borrower cannot be held responsible for the deficient amount. You can also discuss this with your lender and settle for an amount less than the actual deficiency.

Guest

Thank you. Does anyone know the best way to approach this discussion with the lender? I tried to ask about this and they said they would have the right but wouldn't say if they would.

shortsaleus · Joined: 03 Jun 2009 Posts: 4 3.68 Dollars($)

If you participate in a short sale no deficiency Judgment will occur, that is the lender will not have a judgment immediately after the sale that they can use to garnish wages or banking accounts or attach other assets. A deficiency Judgment comes at the end of foreclosure or collection litigation, it should also be noted that some states do not allow Deficiency Judgments and you can check on such at our web site look for state foreclosure laws tab. A deficiency for a short sale and the borrowers ultimate responsibility for it is subject to negotiation with the lender see above response.

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short sale/def. judgment