Florida Foreclosures- How Long Does My Lender Have To File Deficiency Judgement?
Statute of Limitations for Post Foreclosure Deficiency Judgements
In the state of Florida AFTER your home or property has been foreclosed on, your lender or the mortgage note owner has a specific time period in which they can file a judgement against you.
What happens when you lose your property in a foreclosure is that your property will be sold and most often it will be sold for less than what you owe your lender.
When there is not enough money to pay off the balance of your mortgage- that is called a “deficiency”.
The creditor ( your bank- note owner- servicer in behalf of your note owner- etc) has a right in the state of Florida to file a claim against you for that deficiency amount.
So if you owe the bank $500,000 on your loan for your property but the foreclosure sale goes for $400,000; you owe your lender $100,000. Your lender has the right to get a judgement against you for that amount.
BUT there is a statute of limitations in Florida for how long they have to make this claim against you.
The rules have also recently changes with the new updates to foreclosure rules in Florida.
The rules used to say that the bank has 5 years to file a deficiency judgement against you.
With the new rules- the creditor in a foreclosure only has 1 year to make a claim against you.
If your foreclosure took place on or after July 1, 2013 the creditor has to file their deficiency judgement against you within 1 year.
If your foreclosure happened before July 1, 2013 then your creditor has 5 years to file that deficiency judgement against you or prior to July 1, 2014: whichever comes first.
If your lender has violated these new rules we suggest you seek the advice of a good attorney.
We are NOT attorneys and we are NOT giving you legal advice. Please contact your attorney for specific legal advice pertaining to your own situation.
If you want to avoid your foreclosure- a Florida Short Sale may be a better option for you. Call Nestor Gasset or Katerina Gasset right away at 561-753-0135 for a confidential phone interview about your situation.
The process involved in a short sale can be very demanding and here are some helpful tips for Florida short sale sellers to prepare you along the way.
Short sales can be very helpful; however, it can lead to critical consequences when not properly done. Let us walk you through the process, give you all the information you need, and provide you with all the necessary tools with our Florida short sale services.
Call Katerina Gasset at (561) 502-1577 today to get your Florida short sale question answered.
On paper, strategic short sales for homes in Wellington FL may seem like a straightforward process.
But that’s on paper. What happens in reality can be a lot more complicated and – more importantly –it can take quite some time, too. If you are already on the foreclosure list then you definitely need to act now or it would be too late to do anything at all.
There have been recent changes made about who can and can’t qualify for a short sale but these changes only apply to Freddie Mac and Fannie Mae loans. If your loan isn’t owned by either of the two, then you should speak with your creditor or loan servicer directly to find out what qualifications you have to meet.
Strategic short sales for homes in Wellington Florida do get pulled off once in a while but never by an inexperienced short sale agent. Even the fact that the agent is also a Realtor isn’t always enough. What you should really need is someone who knows everything about the local market and has experience and expertise dealing with short sales.
Only Wellington FL short sale specialists have a good chance of pulling off a strategic short sale. This is especially true if you are not in the red in the first place. Ultimately, it boils down to convincing the creditor that it’s in his best interest to approve of your short sale application. Rarely do creditors place much importance on how short sales would benefit the homeowner, too.
These conditions can be anything under the sun, but rest assured that they are always designed to benefit the creditor. More often than not, it may have to do with how much time you have to short sell a house, how much you can sell it for, and if there is any additional payment you have to make after the house has been sold.
The demands may or may not be reasonable, but if you have a Wellington FL short sale specialist with you then there’s little for you to worry about. There’s nothing you can do that your agent won’t do – and more – to short sell your home.
Compared to the task list of a Wellington Florida short sale specialist when working with a homebuyer, his or her duties are usually double or even triple in number if the agent is working with a home seller instead.
To give you a fair idea of how helpful a short sale agent can be, here are just a few examples of the services they can and will perform on your behalf.
Short sale packages – If allowed to do so, your agent will speak with your creditor on your behalf and find out what documents the creditor requires from short sale applicants. Your agent will also make sure that you gather all such documents and be able to submit them on time.
Financial situation – A good Wellington Florida short sale specialist will also take the time to evaluate your financial situation. He or she may also have several recommendations that are meant to make you a more viable short sale candidate in a financial sense. Certainly, your agent will also double check that you have all the necessary financial statements – including pay stubs, tax returns, and bank statements – to serve as further proof that your financial situation is what you said it is.
HUD-1 Settlement Statement – Anyone who thinks of buying or selling a house usually needs to submit this statement. It can look quite intimidating and complex at first glance, but you don’t need to worry about it as long as you have a competent short sale specialist on your side.
BPOs and CMAs – BPO stands for broker price opinion and CMA stands for competitive market analysis. Although these two documents are distinct from each other, they are similar in the sense that they provide information on how “sellable” your property is. Your agent usually has to submit his or her own CMA to a bank and coordinate with the latter when it comes to obtaining a BPO. If you have a great Wellington Florida short sale specialist representing you, then you can be sure that your creditor will receive a valid, authentic and accurate CMA and BPO that at the same time speak of positive thing about your home.
Negotiations – This is extremely important if you have two or even three existing mortgages out. Your agent would have to negotiate with all your creditors as you need everyone’s approval before a short sale can be completed.
Closing – And finally, a good short sale agent in Wellington FL will do his or her utmost to do everything else that has to be done so that you and the other can finally close the deal.
Wellington Florida short sale specialists can help individuals like you qualify to purchase a short sale home. Short sale houses are very much different from regular homes for sale when it comes to its approval process. More often than not, a greater amount of cooperation and collaboration is required between homebuyers and homeowners in order for a short sale to push through. Certainly, there is a higher chance for you to buy your dream house at the right price if you have a Wellington Florida short
sale specialist representing you.
Here are just a few examples of what a short sale Realtor can do for homebuyers.
Review purchase contracts
If you have been provided with a purchase contract by the homeowner or listing agent, you can ask your own agent to review it on your behalf. Of course, your agent’s expertise only extends to real estate concerns. If you have concerns regarding the legal nature of the contract, your short sale Realtor in Wellington FL will likely be able to recommend a lawyer who can evaluate the contract for you.
Submit and process purchase contract
If necessary, your agent can take the appropriate steps for the transaction to push through even when you are not physically present to seal the deal. Purchase contracts may, for instance, be signed electronically and emailed or faxed to the other party. Your short sale specialist will make sure that you’ve done everything needed for the contract to be valid and legal.
Obtain preapproval for loan
Wellington Florida short sale specialists more often than not have the contacts to help you apply for loan preapproval. Once your loan has been preapproved, your agent will also make sure that you will have a preapproval letter to submit to the homeowner and his or her agent. Your Realtor will ascertain as well that the validity period will be long enough to cover the time needed for you to close the sale.
Take immediate care of addendum
An addendum to a short sale contract is basically an additional clause that one of the parties has deemed necessary to include. If your creditor has an extra condition for you to comply with, a good Wellington Florida short sale specialist will be sure to notify you immediately of such changes. If you approve of the changes, your agent will also make sure to secure your signature for the added clauses and have the modified contract submitted, signed, and sealed before your creditor changes his mind
about the whole thing.
To know whether a Wellington Florida short sale Realtor is right for you or not, you need to consider the agent’s suitability based on your preferences and the type of house you live in.
Some personalities simply complement each other while others plainly clash. Naturally, you need to find a Wellington Florida short sale Realtor whose personality would match and complement yours. If you are, for instance, the bossy type then you would probably need someone who won’t be annoyed when your requests still sound like commands. If you are the shy type, then you would probably work better with an outgoing and assertive agent more than capable of speaking on your behalf.
Some homes are simply easier to sell than others. If your Lakeland FL home is larger and more expensive or older and more decrepit than most, then you would probably have a harder time applying for a short sale. And even if you did manage to win your creditor’s approval, you would still have a hard time finding someone willing to buy your property.
For all these reasons you would need to work with a highly experienced Wellington Florida short sale Realtor. An experienced agent will also get more things done in a shorter period of time. That’s something you would no doubt appreciate if you have an urgent need to sell your home or move out.
Specializing in short sales is akin to having significant relevant work experience in the sense that it helps get the job done more quickly. No matter what kind of home you have in Wellington FL, it definitely would not hurt to have a short sale specialist working with you.
An expert short sale specialist would know immediately what to do if you have, say, two mortgages taken out of your home or if your creditor initially disapproved of your loan application. Agents specializing in short sales are also likely to know where and how to quickly find answers whenever they’re confronted by any unusual situation. Overall, that means having less time and money wasted.
Agents tend to have varying communication philosophies. While one agent may not mind speaking daily with their clients, another Wellington Florida short sale Realtor may prefer to contact a client if there is verified interest in his or her property.
Ultimately, you need to find the perfect agent who satisfies you in all the aforementioned aspects. When you do, then that’s exactly the Wellington Florida short sale Realtor you should work with.
Even with financial aid packages starting to pour in from banks, there are still hundreds or even thousands of homeowners who won’t qualify for such help and are thus in dire need of the services of a Florida short sale specialist. Some time ago, the courts have ordered a number of banking corporations to offer additional financial aid – or even return deeds to previously foreclosed homes – to homeowners who have been wrongfully evicted from their properties.
If, however, you are only in the brink of foreclosure then such financial aid packages are not yours to enjoy. There is still a good chance that your bank or creditor would seize your property and foreclose it if you don’t take proper precautionary measures ahead of time. One such measure would be to approach a Florida short sale specialist and get him or her to help you.
Are Short Sales the Ultimate Solution?
Unfortunately, not all homeowners would be considered eligible for short sales. The conditions vary from one creditor to another. Ultimately, however, you or – more specifically – your Florida short sale specialist would have to prove that it’s to everyone’s benefit that you are allowed to short sell your home as soon as possible.
What Do Short Sales Entail?
Let’s say that your house in Florida may be sold today at $600,000. Unfortunately, your home used to be worth $800,000 and in fact you have mortgaged it to the hilt and thus owe the bank $800,000. Obviously, it would be pretty impossible for you to sell your home at its original price. But if you sell your home based on its current market value, then that would mean losing about $200,000 in the process.
$800,000 Original value of your home or the amount of your mortgage balance
$600,000 Present market value of your home
$200,000 Negative balance if you sell your home at its present market value
This won’t be that big a problem if you fully own your property and it’s not encumbered in any way. Although you are losing $200,000 technically, it’s not something that would significantly hurt your finances.
But it’s different if you owe $800,000 on your home and are no longer able to keep up with mortgage payments. To prevent foreclosure and an unwanted blemish on your credit record, you would need to sell the home. But even if you do sell it, you would still be left with a $200,000 debt you can’t pay.
Now, this is the part where a Florida short sale specialist can step in and help you out.
A short sale specialist would do the following to ease your burden:
South Florida Home Prices To Hit Bottom in 2012
Six years after the housing collapse here in South Florida there is a predicted light at the end of the tunnel. Time goes by very fast. It seems like just yesterday we were watching home prices fall by over 50% in many parts of South Florida- in Palm Beach County, Broward County and Miami Dade County and up to St Lucie County along the Treasure Coast.
Here we are six years later and prices are beginning to stabilize. That is a long free fall! Moody’s Analytics projects that in the next 10 to 15 months we will see the bottom of the fall.
It is not going to be some housing boom especially not the likes of what we have seen in 2003, 2004 and to the middle of 2005 when the prices peaked.
This is all about median also. So bear that in mind. That means there are areas that will see a faster rise and others a slower upswing. There are condos on the waterfront in South Beach in Miami that already have risen by 25% but yet down the street into North Miami Beach off the waterfront sellers can not give their condos away. So it is all relative to your exact market.
Here in Wellington the prices for most properties and subdivisions are beginning to stabilize. Near 60% of all our sales are ALL CASH closings. The lower end properties sell to first time homebuyers or investors. The equestrian high end has always sold to those serious about moving their horses here to our great climate.
But there are areas all around us that are not fairing as well.
Some of the banks are not as positive in the outlook because they say there are still too many foreclosures in the courts and too many people behind in their payments and too many bank owned properties that still have yet to be put on the market.
Unemployment rates, toughter lending rules, harder to get a mortage regulations and more fees on mortgages will slow down the process of recovery as well.
New home construction is starting again so if you are in the market for a new home now may be a good time to buy one.
Rates are still low. Interest rates for mortgages are still at record lows so if you can get a mortgage now is a great time to do so.
Sellers who are not doing short sales and who are not in foreclosure will have the upper hand and some leverage as me move into 2012. Most likely we will continue to see bidding wars on non stressed properties. This is good news for sellers who don’t want to wait until all their equity lost decides to come back.
There are over 371,000 open foreclosure cases in the state of Florida. Palm Beach, Broward and Miami/Dade counties have about 100,000 of those cases.
So we are not in a free fall any longer but still have a long ways to go to get out of this mess.