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Consider Obtaining a Deficiency Judgment If a Foreclosure Sale isn’t Sufficient

Consider Obtaining a Deficiency Judgment If a Foreclosure Sale isn’t Sufficient

As a housing lender, it can be frustrating when money that is owed to you is not paid back properly and in full. Even a foreclosure sale may not be able to recover the full amount that you are owed. If you are having difficulty recovering what you’re owed in South Florida, consider initiating a deficiency judgment action with help from trusted Fort Lauderdale foreclosure attorney, Marc Brown.

At the law firm of Marc Brown, P.A., we provide representation to banks, mortgage servicers, insurance companies, credit unions, other institutional lenders, and private investors. For more than a decade, we’ve been helping lenders recover their mortgage-related losses in Miami-Dade, Broward, and Palm Beach counties.

What is a Deficiency Judgment?

In a foreclosure action, the total debt that the borrower owes sometimes exceeds the foreclosure sale price. The difference between the total debt and the sale price is called a “deficiency.” In Florida, a lender may obtain a deficiency judgment against the borrower as part of the foreclosure action or through a separate lawsuit.

If you as the lender successfully obtain a deficiency judgment, the borrower is liable for the amount designated by the judgment. It is important to work with a real estate attorney to ensure that the amount of your deficiency judgment is sufficient to recoup your losses.

Florida courts have flexibility regarding the amount of a deficiency, but a deficiency judgment cannot exceed the difference between the outstanding balance and the fair market value of the property as of the date of sale. Every state handles deficiency judgments somewhat differently, so it is important to work with an attorney in Fort Lauderdale who is familiar with the State of Florida’s real estate and mortgage laws.

When Should a Lender Contact a Real Estate Litigation Attorney

In order to seek a deficiency judgment against a borrower after a foreclosure sale, the mortgage lender has to file with the court a motion which states the property’s market value on the sale date and the amount of the deficiency. In court, the borrower may dispute the lender’s valuation of the property. You will need an attorney who has courtroom experience – and a record of success – in deficiency judgment cases.

Fort Lauderdale attorney Marc Brown will explain the legal process – and the costs – so that you can make an informed decision about pursuing a deficiency judgment. He will prepare all of the pertinent documentation for a deficiency judgment and will advocate in court on your behalf.

The Florida statute of limitations for obtaining a deficiency judgment for a residential property with no more than four dwelling units is one year. The statute of limitations “clock” begins on the day after the clerk of court issues the certificate of title to the party who bought the property at the foreclosure sale.

Contact the Right South Florida Attorney for a Free Foreclosure Consultation

For aggressive legal representation and high-quality legal services, look no further than the law firm of Marc Brown, P.A. With more than a decade of experience representing lenders in south Florida, attorney Marc Brown has established a reputation for legal excellence and outstanding client service. To schedule a no-cost legal consultation regarding foreclosures and deficiency judgments, call the law offices of Marc Brown today.