Legal Question in Real Estate Law in Florida

Re: Owe more than property is worth -- seeking Foreclosure

NOTICE: The information provided in this response is not, nor is it intended to be, legal advice. Many factors contribute to providing legal advice, including the specific facts of a situation. You should consult a competent attorney in your jurisdiction for advice regarding your individual situation. By reading the "Response" to your question or comment, you acknowledge that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then do not read any further.

Your question is complicated and cannot be addressed adequately in this forum. However, a few points in response. If the property is located in Florida, the foreclosure action and any subsequent action for a deficiency judgment will take place in the county in Florida in which the property is located. You will need a Florida attorney to represent you in these local matters. If the bank ultimately obtains a deficiency judgment and seeks to collect against assets you own and hold in Georgia, you may well need a Georgia attorney to respond to those actions. Whether those assets will be subject to collection will depend on a review of each asset and the state and federal rules potentially protecting or exempting that asset from collection. I believe that the statute of limitations for the bank to bring a deficiency judgment after the foreclosure is four years. There is no way to predict whether the bank will pursue obtaining a deficiency judgment. I urge you to retain a real estate attorney to assist you in evaluating your situation and to explore possible strategies.

Re: Owe more than property is worth -- seeking Foreclosure

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

The chances are good that the bank may seek a deficiency judgment if the disparity is as great as you say. If they do, you will be personally liable for whatever deficiency judgment that is obtained. It will be for any monies the lender loses from foreclosing on the unpaid loan including the difference between the amount owed to the bank plus court costs, accrued interest and late fees, attorney's fees and all cost of the foreclosure sale as opposed to the amounts realized at the foreclosure sale. The judgment can be obtained anytime within the statute of limitations which may be up to five years.

I cannot respond as to what is able to be taken as it would be governed by the laws of the state where your assets are located which is presumably Georgia in your situation. You will need to have counsel in Florida to represent you in the foreclosure action if you plan to defend against it or try to work out something with the lender. A Georgia attorney might be required for later collection activity by the lender.

Scott R. Jay, Esq.