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Attorney answers (1)
When a property is foreclosed in Florida and a final foreclosure judgement is entered, the property is sold by public auction (the "foreclosure sale") at the Courthouse in which the foreclosure suit was filed. The property is sold to the highest bidder and then the Clerk of Court issues a Certificate of Title to the winning/highest bidder.
Regardless of who buys the property at the foreclosure sale, the Lender can seek the difference between the fair market value of the property at the time of the foreclosure sale and the amount of the foreclosure judgment. This difference is called the "deficiency". Should the Lender file a Motion for a Deficiency Judgment, the Motion would be determined according to equitable principals. In other words, obtaining a Deficiency Judgment may not be an "open and shut case".
With all of that as a preamble, we are now getting to your answer. If a Florida Court enters a Deficiency Judgment, that Judgment is enforceable in Florida pursuant to Florida Law. Importantly, the Deficiency Judgment is also enforceable in other states pursuant to the Full Faith and Credit Clause of the U.S. Constitution. In addition, there are also uniform laws agreed to by most states, which facilitate collection in one state of another state's judgments.
In other words, the Florida Deficiency Judgment will most probably be enforceable in New York State. It should, for all intents and purposes, have the same effect as a New York State Judgment and be enforceable in the same manner. Therefore, whether the Judgment will ultimately affect your New York Property depends on New York Law. I respectfully suggest that you obtain local counsel in New York regarding the affect the Deficiency Judgment may have on your real and other property, as well as an attorney regarding asset protection.
Another option is to obtain a Florida Real Estate Attorney with foreclosure experience and try to negotiate the Lender’s taking back the property by way of a Deed in Lieu of Foreclosure (coupled with an appropriate release). This, if successful, should protect your New York property from the effects of a Florida foreclosure.
Regardless of who buys the property at the foreclosure sale, the Lender can seek the difference between the fair market value of the property at the time of the foreclosure sale and the amount of the foreclosure judgment. This difference is called the "deficiency". Should the Lender file a Motion for a Deficiency Judgment, the Motion would be determined according to equitable principals. In other words, obtaining a Deficiency Judgment may not be an "open and shut case".
With all of that as a preamble, we are now getting to your answer. If a Florida Court enters a Deficiency Judgment, that Judgment is enforceable in Florida pursuant to Florida Law. Importantly, the Deficiency Judgment is also enforceable in other states pursuant to the Full Faith and Credit Clause of the U.S. Constitution. In addition, there are also uniform laws agreed to by most states, which facilitate collection in one state of another state's judgments.
In other words, the Florida Deficiency Judgment will most probably be enforceable in New York State. It should, for all intents and purposes, have the same effect as a New York State Judgment and be enforceable in the same manner. Therefore, whether the Judgment will ultimately affect your New York Property depends on New York Law. I respectfully suggest that you obtain local counsel in New York regarding the affect the Deficiency Judgment may have on your real and other property, as well as an attorney regarding asset protection.
Another option is to obtain a Florida Real Estate Attorney with foreclosure experience and try to negotiate the Lender’s taking back the property by way of a Deed in Lieu of Foreclosure (coupled with an appropriate release). This, if successful, should protect your New York property from the effects of a Florida foreclosure.
