Legal Question in Banking Law in Florida

The bank can get a judgment against you for the deficiency between the amount owed and the amount for which they sell the RV after repossession. However, Article X, Section 4 of the Florida Constitution exempts homestead property from levy and execution by judgment creditors. This means that a creditor (other than the mortgagee of your house) cannot force the sale of your homestead to satisfy a judgment. Assuming you live in the home you refer to in your question, and assuming you have not waived your homestead protection, the bank cannot take your home from you.

As a practical matter do not be a victim; try to resolve this by negotiations with the bank. You should a buyout from a local RV lot or go online. If at all possible get a written offer (similar to the offer Carmax provides car owners). With this information approach the bank. See what options they can consider.

Attorney Verbit is correct that your home is homestead and is protected from your creditors (except your mortgages). However, you will to remove the lien on the home should wish to sale or refinance; you file a Notice of Homestead. Also, you will have a creditor or collection agency hunting you down for 5 years on the bad debt, or possibly 20+ years with a Judgment.

Be smart, you should be proactive with your creditors. With a little effort on your part, you may negotiate a payoff, control the sale, reduce your liability, and avoid a forgiveness of debt (1099 C taxable to you).

I hope this answer was useful.

Good luck. Remember KNOWLEDGE IS POWER. Know your rights.

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