Deficiency notices - Loan Modification Forum

Isabel · 10-30-2009, 08:10 PM

Has anyone seen deficiencys being filed after a foreclosure in Florida or a recourse state. How does everyone feel about this. Will banks start filing them more often?

How are people dealing with these?

Enough Already · 10-31-2009, 04:42 AM

In FL foreclosures are done through the court, so the lender normally files for and gets the deficiency judgment at the same time.

From all of my research the banks aren't really pursuing collections on deficiencies at this time, but that will probably not always be the case. The problem they will have is actually collecting the money. I believe one of the reasons they aren't pursuing collections is that people are broke, and it costs money to try to collect. They could do an asset search on borrowers to determine whether it's worthwhile to try to collect, but again assets searches, and spending more time and research to come up empty handed just don't seem like a good business plan.

That's just my take on it. But, the answer is yes, they do file for, and they generally do get the deficiency judgment at the time of Foreclosure in FL.

cleach · 10-31-2009, 05:13 AM

I'm in Georgia, and I know here there is a 30 day time limit for them to file for a deficiency judgment. The sale has to be verified, etc.

However, it's my understanding that if they don't get it done in that 30 days, they've missed their chance.

Isabel · 11-02-2009, 03:12 PM

what do they search for in an asset search?

10-30-2009, 08:10 PM	#1 (permalink)
Isabel Member Join Date: Oct 2009 Posts: 17 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Deficiency notices Has anyone seen deficiencys being filed after a foreclosure in Florida or a recourse state. How does everyone feel about this. Will banks start filing them more often? How are people dealing with these?

10-31-2009, 04:42 AM	#2 (permalink)
Enough Already Senior Member Join Date: Jan 2009 Posts: 438 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Deficiency notices In FL foreclosures are done through the court, so the lender normally files for and gets the deficiency judgment at the same time. From all of my research the banks aren't really pursuing collections on deficiencies at this time, but that will probably not always be the case. The problem they will have is actually collecting the money. I believe one of the reasons they aren't pursuing collections is that people are broke, and it costs money to try to collect. They could do an asset search on borrowers to determine whether it's worthwhile to try to collect, but again assets searches, and spending more time and research to come up empty handed just don't seem like a good business plan. That's just my take on it. But, the answer is yes, they do file for, and they generally do get the deficiency judgment at the time of Foreclosure in FL.

10-31-2009, 05:13 AM	#3 (permalink)
cleach Senior Member Join Date: Sep 2009 Posts: 93 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Deficiency notices I'm in Georgia, and I know here there is a 30 day time limit for them to file for a deficiency judgment. The sale has to be verified, etc. However, it's my understanding that if they don't get it done in that 30 days, they've missed their chance.

11-02-2009, 03:12 PM	#4 (permalink)
Isabel Member Join Date: Oct 2009 Posts: 17 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Deficiency notices what do they search for in an asset search?

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode