Foreclosure – DON’T FALL VICTIM TO BAD ADVICE

It absolutely amazes me (although it really shouldn’t any longer – I have been practicing law for nearly 20 years) how many prospective clients after getting what may be the best advice available from yours truly decide to do the worst thing possible! Their reason is normally something like “a friend told me”, or “I heard that if I” …, or “I saw on TV that …”, or “my neighbor hasn’t been paying for …”

What is the worst thing they could do you might ask? Not pay a professional to advise them and assist them throughout the process and instead let the house go to foreclosure. “Why not?”, you may ask. “After all, I can stop making my mortgage payments and stay in my house for over a year until the lender finally forecloses.”

I will give you just one of many reasons that simply letting your house go to foreclosure is not a good idea (and there are many, many more). I predicted years ago that lenders would start pursuing deficiency judgments. Well, the time has arrived. I now get calls weekly from people that FELL VICTIM TO BAD ADVICE and are now getting sued by their lender for the deficiency. For those of you who don’t know what a deficiency is, under Florida law, the lender has the right to pursue the difference between the amount of the debt owed to the lender at the time of the sale of the real property (ex., the date of the foreclosure sale) and the fair market value of the real property at the time of the sale.  For example, if at the time of the sale the amount owed to the lender was $250k and the fair market value was $125k, the lender can pursue the borrower for $125k! The lender can then get a judgment for $125k against the borrower and then proceed to levy on the borrowers assets, garnish their wages, etc., to collect on the judgment. The judgment can be good against the borrower for up to twenty (20) years! 

A short sale or a deed-in-lieu is a much better option (See my other blogs). Don’t fall victim to bad advice. Let us help you. Call us at Wyckoff Law Firm, P.A., 941-795-6565 to schedule an appointment for a free consultation.