Legal Question in Real Estate Law in Florida

Asset potection laws vary from state to state, and can greatly impact the way a judgment creditor can collect money from you. The first thing to remember is that in order for any creditor to garnish your assets in Florida there must be a judgment from a court against you. So you want to avoid getting a judgment against you for money damages.

In many cases a Short Sale should result in there being no deficiency owed by you once the bank closes the deal with the new buyer. However, this is not an automatic thing and MUST be negotiated with the bank before the sale goes through. If you do not address this prior to the sale approval the bank could seek to obtain a judgment for the difference between sale price and amount owed.

Usually a deed in lieu is without recourse, but again you need to make sure that your lender doesn't try to pull a fast one and somehow come after you.

Now, as for whether your IRA, Checking, or savings accounts are vulnerable. That depends on a number of factors. Generally speaking, Florida IRA can be protected, and there may be protections available for some other assets as well. You should consult with an attorney before entering into any agreements for Short Sale, Deed in Lieu, and especially before fighting a foreclosure on your own.