Florida Deficiency judgements - what info can they dig up?

[fandelem]

Hi!

I have a few questions regarding Florida Deficiency judgements .

I would like to know if:

- does anyone have any specific experience with what information they can use to determine if you are "worthwhile" to go after?

- do they have review boards that periodically check in on you to determine if you are worthwhile to sue? do they run credit checks periodically to check up on you?

- what would they specifically be looking for on a credit check that would be a red flag?

- from what i have read, it sounds like if I can live under the radar of credit for 5-7 years (assuming they don't file for an extension) then I have a very good chance of them not going after me?

it sickens me that i pay $36,000/yr to live in my house and not touch principle (technically when you calculate i'm saving about $6K in taxes, and rent will be about $10k, the offset would be about $20K). not to mention it's in a city my wife doesn't want to be in (she wants to be in her home town with her family). i've sunk $110k cash into the house already (bought it at $472k). i owe $370k and it's probably worth $285k if it had to sell fast. i haven't lost my job like so many heartfelt stories on this board, but i also do not see a light at the end of the tunnel for me. i know it sounds sad, but i think i'm at the point where i'm fully willing to pay cash for (used)cars, couches, tv, rent from someone who won't do a credit check, pay higher auto insurance rates, come up with deposits on utility hookups, etc. i just don't see how my credit is worth $80-100K (if i owe 370 and sell it for 280, etc) and the month after month mortgage payments without even touching principle.

if you are still reading by now, yes, i have made a very bad decision by purchasing the house in the first place. but now it's about collateral damage and calculated risk and i'm hoping some folks can give me some input.


thanks,

[MyHAMP]

CHASE has a judgement against me and they are a pain in the a$$. Their ATTORNEY can contact other creditors and ask for all information and documents they have about me. Doesn't help them because I'm really broke but it's unbelieavable what they are allowed to do - that's like living in China or Russia.

[fandelem]

MyHAMP: That is good information. I'm so sorry to hear about your situation. Question though-- it sounds like their eyes and ears are tied through your credit actions though, right? If you lived under the radar of credit, what else do you think CHASE could dig up on you? Possibly 401k info? Owned cars/boats/toys?

I read on another forum (flyertalk) that I can have myself added to someone else's CC without SSN (amex asks for dob/ssn, but seems to just require DOB) -- I was thinking about having my Dad set me up with a credit card in his name/ssn with me as an addntl cardholder and I would just pay off the stmt each month (I have a good relationship with my Dad). So that would be yet another way to cover credit tracks, I'm thinking?

[MyHAMP]

MyHAMP: That is good information. I'm so sorry to hear about your situation. Question though-- it sounds like their eyes and ears are tied through your credit actions though, right? If you lived under the radar of credit, what else do you think CHASE could dig up on you? Possibly 401k info? Owned cars/boats/toys?

Yes, they "operate" based on your credit-report. I think they run that on a regular basis and if a new creditor pops up, they contact said creditor and ask for the supplied proof of income, bank statements etc. - all the information supplied to obtain credit. Now if that info wouldn't be on the credit-report, they wouldn't know of that creditor...

Every time they call me in for an "audit" - happened twice so far - they also ask about cars, boats etc. - so even if the obtained credit has nothing to do with it - they ask. It's certainly up to you to disclose that information but legally, I think you have to.

But again - if you appear to be "dead" on your credit-report, they don't have many "traces" they can follow..

[LostVegas]

MyHAMP: Wow.......I new you got the modification, but not that CHASE was pursuing a deficiency........were they the ones that modified you, or is this for a different property?

I'm not in Florida, but going through similar situation. Our cars are paid for and we have no other credit cards, credit of any kind and our once perfect credit is now destroyed, so I was thinking the same thing as the OP, just use all cash and stay below the radar.

I'm assuming if a new house was purchased they'd immediately get a judgmement and file a lien........

I have a question though that's been bugging me. In Nevada with a purchase money mortgage where I have the original first only loan (no refis or equity taken out) the lender has only 6 months to file a for the deficiency. But I've also heard they can sell the debt to a third party junk debt collector. How is this fair? If they haven't filed and missed the statute of time to file, how can someone else collect at any time?

[wtbdj]

How long can they try to collect?

[MyHAMP]

MyHAMP: Wow.......I new you got the modification, but not that CHASE was pursuing a deficiency........were they the ones that modified you, or is this for a different property?

Thank God our loan wasn't with CHASE. That judgement was from a credit-card..

[MyHAMP]

How long can they try to collect?

That depends on how you define "try to collect". Your legal defense to prevent a judgement is the SOL and that varies by state and kind of agreement. However, if the SOL has expired, it doesn't mean they can't "collect" any more by calling you or sending you collection-letters. They can do THAT until the debt is paid or you file BK - virtually forever.

There is no SOL on "trying to collect" debt.

[fandelem]

This is a helpful thread. Now I have a question along the lines one of you mention regarding selling the debt to a third party junk debt collector. Can they sell the "debt" (deficiency judgement from a foreclosed property) to a collector, or is that credit-card/auto/etc collections only? If they can, why wouldn't they do that for everyone to try to recoup some money back rather than nothing?

[freddy1888]

Im in the same boat, i make payments on interest only,Im upside down about $75000 (my equity line only) my first will be satisfied im sure with a short sale. im thinking of buying a second home at a much cheaper price with lower payment,homestead it ,and then walk on the underwater property,hell if im homesteaded they cant do much,they the deficiency is my concern but attorneys tells me it becomes investment property once i homestead my second home and the bank will just 1099 me and with the loss i took on property and large down payment down,and expenses im sure my penalty will be nothing.
Just wanted to pass this on,hope your matter has been taken care of.

[shak_d]

Any updates? I am heading in that direction, unfortunately. . A side note question, can they access your savings/401k in order to retrieve some of the dept?

[Cat Damiano]

Hi shak_d,


Welcome to the forum and thank you for joining...........


A creditor can not touch or access retirement accounts, even if one were to be sued.

[shak_d]

Hi shak_d,


Welcome to the forum and thank you for joining...........


A creditor can not touch or access retirement accounts, even if one were to be sued.

Thanks Cat. Good to know, although it will be a wile before I can even retire.