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BHB
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 Posted: Sun Oct 25, 2009 8:10 am Post subject: deficiency judgement |
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I have a home in florida which is currently not worth anything due to construction defects and is now sinking. If a receive a small judgement from their insurance company and use that money to buy a new primary residense in Arizona (I cannot afford local prices) and let my Florida home go via Deed-in-lieu: can they come after my home in Arizona for a deficiency judgement?
Thanks....BHB |
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 jenkin7
Joined: 04 Jun 2007
Posts: 3429
Location: Hawaii
514.13 Dollars($)
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| Posted: Sun Oct 25, 2009 10:24 pm Post subject: |
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Hi BHB,
They will not be able to foreclose on your new house in Florida, but they may put a lien on the property. Since your current house is not worth much due to constructional defects, there will remain a huge deficiency, I guess. In that case, the lender may sue you, obtain a judgment against you and put lien on your property in Arizona. However, in a deed in lieu (DIL) the deficiency is generally forgiven by the lender. You can also consult foreclosure attorneys in Florida and check out if you can get protection against deficiency judgments under anti-deficiency laws. |
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loanday123
Joined: 28 Oct 2009
Posts: 16
3.83 Dollars($)
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| Posted: Wed Oct 28, 2009 6:15 am Post subject: |
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they can go after any unencumbered assets. They may find off limits assets that are jointly held by you and your spouse, and certain assets needed for you to survive and perform your job. But a wage garnishment, or asset sesure are both possible as are leins on real estate and interception of tax refunds, to name a few.
_________________
Bank of America Loan Modification
Loan Modification |
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BHB
Guest
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| Posted: Wed Oct 28, 2009 10:27 am Post subject: deficiency judgement |
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| loanday123 - Please clarify what assets they may go after. We are retired and our only source of income is Social security. Our only visible assets (after we buy the home in Arizona) will be a 2002 pick-up and our household furnishings. |
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savior70
Joined: 25 Mar 2009
Posts: 1422
Location: Florida
168.75 Dollars($)
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| Posted: Fri Oct 30, 2009 3:37 am Post subject: |
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Hi BHB,
The lender can go after your assets like your savings accounts, your cars etc. However, lenders do not generally go after such assets. The lenders consider this as their last option. Insofar as your social security income is concerned, they are exempt from collections. Your lender cannot go after it to recover their deficiency. They will also not be able to foreclose on the house you wish to purchase. |
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