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DIL Foreclosure and HELOC Deficiency Judgement in Florida

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mmora8 Joined: 29 Oct 2008 Posts: 1 1.35 Dollars($)	Posted: Wed Oct 29, 2008 7:30 pm    Post subject: DIL Foreclosure and HELOC Deficiency Judgement in Florida Like 0 Dislike 0 Hi, I have a rental property and a HELOC. If I do a DIL of Foreclosure, would i still get a Deficiency Judgement for the HELOC portion? Should I do a Short Sale instead? If so, how will I be held responsible for the HELOC. Any help with this will be appreciated. Robert
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Wed Oct 29, 2008 9:50 pm    Post subject: Like 0 Dislike 0 Welcome mmora, If you go for a deed in lieu (dil) because of non-payment of the first mortgage or a Heloc (second mortgage), you won't be charged with the deficiency payment as because deed in lieu waives off the lender's right to collect the deficiency. A short sale would be better as far as the credit effects are concerned. But you can be asked to pay the deficiency, if any. If the lender accepts a deed in lieu because of the first mortgage, the Heloc will probably be charged-off and sold off to a collection agency who'll try to collect the unpaid debt from you. To know more on second mortgage charge-off, refer to http://www.mortgagefit.com/know-how/secondloanchargeoff.html . _________________ Procrastination is the enemy of your financial success
jameshogg Joined: 20 Dec 2005 Posts: 10460 Location: Nevada 987.57 Dollars($)	Posted: Thu Oct 30, 2008 11:03 pm    Post subject: Like 0 Dislike 0 Hi mmora! Adonis is right. In case of DIL, the deficient amount will be forgiven but if its a short sale, then you will have to pay off the deficient amount. In case of charge off, if you are unable to pay the collection agency, then liens will be placed on other property or your wages can also be garnished. Thanks.
gordon Guest	Posted: Mon Jan 26, 2009 12:07 pm    Post subject: deficiency judgements Like 0 Dislike 0 I am in the State of Florida.I am facing foreclosure or a deed in lieu.In the event that there is a shortfall after bank auctions or sells,can they place a lien on my principal homestead residence in Florida.Thanks
gordon Guest	Posted: Mon Jan 26, 2009 12:09 pm    Post subject: deficiency judgement Like 0 Dislike 0 I should have mentioned that it was a rental property that is possible foreclosure
Niicss Joined: 03 Oct 2005 Posts: 4834 Location: New Jersey 508.88 Dollars($)	Posted: Tue Jan 27, 2009 1:20 am    Post subject: Like 0 Dislike 0 Hi gordon, If the lender does a deed in lieu foreclosure, then the lender will not place liens on other properties as the deficient amount resulting from the sale of the property is forgiven by the lender. But if the lender forecloses the property, then he can place liens on other properties in order to recover his debts. Thanks. _________________ Good is the Enemy of Great.

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