What is a Deficiency Judgment in terms of Foreclosure and Bankruptcy?

Jacksonville homes underwater. This is a question that we hear often as Jacksonville Bankruptcy and Florida Foreclosure Lawyers. In short, a deficiency judgment is a judgment for a debt that is owed after a foreclosure, i.e. the amount of money the bank was not able to recover after it forecloses on a home. Lenders are even allowed to add interest, fees and other expenses to that amount as long as their is an outstanding deficiency. While some states have laws that prevent lenders from seeking deficiency judgments, Florida is one of the states that does allow deficiency judgments to be pursued.

It is possible that there may not be a monetary shortfall after a lender has taken and sold a home through foreclosure but that is becoming less and less likely as national home prices have continued to decline. This may seem like a no-win situation for a homeowner but there are alternatives that homeowners can pursue to avoid a deficiency judgment. Foreclosure alternatives such as short sales, deeds-in-lieu, and loan modifications are just a few of the ways a Jacksonville Foreclosure Lawyer may use to help homeowners avoid deficiency judgments.

If you are one of the thousands of Florida homeowners who are facing a Foreclosure Lawsuit and potentially a deficiency judgment, give us a call to explore your potential foreclosure alternatives.