Legal Question in Real Estate Law in Florida
do deficiency judgements affect other property owned?
We have a house that is in desperate need of repair and the bank is refusing to work with us on refinancing due to the needed repair. We have not recieved foreclosure notices but we are behind on the payment. We have decided to let the house go back. We have a truck and motorcycle also financed and payments are current. If we finance an RV before the foreclosure goes thru, can they come after the RV or any of our other property in an attempt to pay the deficiency judgement? Can they only collect property that is tied to the mortgage ie. house/land? Thanks
3 Answers from Attorneys
Re: do deficiency judgements affect other property owned?
They are not limited to the mortgaged property. If they obtain a money judgment against you almost all your property is available to pay off the judgment.
Re: do deficiency judgements affect other property owned?
You should try to sell the home for at least the amount owed on the mortgage note to the lender, so as to avoid a foreclosure action or a judgment against you (and others that may have signed the promissory note). If a money judgment is obtained, and a deficiency results after a foreclosure sale, the judgment holder/creditor will not be limited to the mortgaged property. The judgment creditor may pursue other assets, including possibly the truck, motorcycle and RV. Instead of abandoning the home and giving up, try to sell it for market value, which should be more than what you owe on it. If you get sued, seek the advice of counsel. Good luck.
Re: do deficiency judgements affect other property owned?
yes.
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