Ramifications of Foreclosure

A Look at the Ramifications of Foreclosure in Sarasota and Bradenton

While the foreclosure process itself may be quite difficult and painful, there are more long-term consequences that are important to consider.  The most immediate problem is one associated with the actual value of the repossessed home.  If after a foreclosure, the court approved sale of the property is not sufficient to pay the debt, then there is a deficiency.  For example, if a homeowner owes $100,000 on a mortgage loan, but the foreclosure sale only brings in $60,000, there is a deficiency of $40,000.  This amount is technically still owed on the debt. 

Some states have laws prohibiting a lender from recovering this deficiency from the borrower.  Florida is not on that list.  Florida permits a lender to legally pursue the amount of the deficiency from the borrower.  If they obtain a deficiency judgment, then they can seize bank accounts, garnish wages, place liens on other property and pursue other collection remedies.  They can do this until the deficiency is satisfied.  Lenders can also sell the deficiency judgment to a third-party debt collector. 

Homeowners concerned with the ramifications of foreclosure should consult with an experienced foreclosure defense attorney. Scheduling this consultation can go a long way toward providing relief and peace of mind. Even in imperfect circumstances, it is better to be informed and make decisions based upon solid information.

Call The Forrest Law Firm today at 1-800-915-3923 for an informative and comprehensive consultation on how The Forrest Law Firm Foreclosure Defense Plan® can help you.