My house in Florida was foreclosed on. I had an 80/20 loan (through Suntrust Mortgage) to avoid PMI. The 80% loan was “wiped out” with the foreclosure (yes, I understand they can still file a deficiency judgment). What happens to the 20% loan? It was also backed by the property. How long do they have to file a deficiency judgment on the first loan and when does the clock start (from the last payment or the actual date they sold the house)?
Real Estate Attorney
The second mortgage holder's debt is now unsecured, they can get a judgment against you for the full amount owed, and potentially garnish your wages and levy your bank accounts. I would strongly suggest seeking the assistance of a local attorney. It may be in your best interest to seek the protection of a bankruptcy. Good luck.
This is not legal advice and is not intended to create an attorney-client relationship. The post is only an opinion. You should speak to a local attorney for further information. The poster is licensed only in New York. Please visit www.friedmanlawpc.com or www.friedmanlawassociates.com for more information about our services.
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Speeding / Traffic Ticket Lawyer
If the final judgment is for $300,000 and the property is sold for $200,000, then the deficiency exists right then and there. The clock starts from the time of the foreclosure sale against the owner in favor of the bank and the bank has 5 years to try and collect on the deficiency judgment.
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