Recent, significant changes in Florida’s Foreclosure law have shortened the time period in which a lender can collect a deficiency, or balance after a mortgage foreclosure or short sale. The statute of limitations period for a lender seeking a deficiency judgment on a note secured by a mortgage on a residential property, is now one year, instead of five, for a deficiency action started after July 1, 2013.
The bill also limits the amount that the lender can recover. In the case of an owner-occupied residential dwelling, the recoverable portion is limited to the difference between the judgment amount (in a short sale, the outstanding debt) and the fair market value of the property at the time of sale. The new statute also limits attorneys fees and costs the lender can charge when collecting the deficiencies. See the full amended statute §702.06 http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0702/Sections/0702.06.html
Other recourse may be available to the borrower who is facing the collection of a deficiency judgment. Often times, the debt can be negotiated and satisfied, without filing for bankruptcy.
Call us today to assess your case and see if we can settle your deficiency or find a way around the payment of it.