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DEFICIENCY JUDGMENT AND LOAN DEFICIENCY COLLECTION SLICE AND DICE

By Richard Zaretsky

Real Estate Attorney with THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY

April 01, 2011 02:23 AM

A lot of speculation about deficiencies and what happens to them keep popping up in conversations I have. This week the St. Petersburg Times published an article where a great authority (me) was quoted, along with other findings from research by the paper. You will find it interesting and it can be found at Deficiency judgments let creditors haunt borrowers for up to 20 years.

For those of you that do not have a solid knowledge of deficiency judgments and deficiencies in general, I suggest you read my articles below:

Foreclosure Deficiency Judgment Compared to Deed In Lieu and Short Sale Scenarios

BANKS BEGIN TO GO AFTER DEFICIENCY JUDGMENTS - FANNIE MAE POINTS THE WAY

MOTION FOR DEFICIENCY JUDGMENT - FORECLOSURE CONSEQUENCES

FORECLOSURE DEFICIENCY JUDGMENT or SHORT SALE PROMISSORY NOTE or BANKRUPTCY - REVISITED

FORECLOSURE DEFICIENCY ORDER VS SHORT SALE NEGOTIATED PAYBACK

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com .

See our easy to understand articles at:

TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES

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Leslie Ebersole

Swanepoel T3 Group - Saint Charles, IL

I help brokers build businesses they love.

You should charge people subscriptions for your material. Once again, you've provided a great deal of useful information. Bookmarked, thanks.

Apr 01, 2011 03:57 AM

Rob Arnold

Sand Dollar Realty Group, Inc. - Altamonte Springs, FL

Metro Orlando Full Service - Investor Friendly & F

Thanks for posting all the references. You are a wealth of information when it comes to short sales and foreclosure.

Apr 01, 2011 07:16 AM

Dick and Dixie Sells

Sells Real Estate, LLC - Trinity, FL

Realtors, Tampa Bay Florida Homes For Sale

Yes, we saw the article and noted your quotes. I said..Hey that's our Active Rain Attorney! Great information. Thanks so much for providing this very useful information.

Apr 01, 2011 01:40 PM

Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

Thanks Richard, (congrats on being quoted). I saw the local version of this story and it seems the big guys aren't very active filing for deficiencies at the moment, but the local banks are and sometimes going after absolutely the wrong folks that they will never collect from.

Apr 02, 2011 12:45 AM

Ron Marshall

Marshall Enterprises - Saint Michael, MN

Birdhouse Builder Extraordinaire

Thanks, Richard. You have an encyclopedia of knowledge here. I don't know if any of it translates to Minnesota, but good reading.

Apr 04, 2011 12:05 AM

Kevin J. May

Florida Supreme Realty - Hobe Sound, FL

Serving the Treasure & Paradise Coasts of Florida

Richard, I don't know anyone who makes understanding these processes as interesting and informative as you do in such swift fashion. Thanks for sharing your knowledge here!

Apr 05, 2011 02:54 AM

Richard Zaretsky

THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY - West Palm Beach, FL

Florida Real Estate Attorney

Thanks Kevin!

Apr 05, 2011 02:57 AM

Brad Rachielles

CENTURY 21 Peak, Ca BRE# 01489453 - Upland, CA

REALTOR, CDPE, Upland, CA

Richard,

Thanks for the links. I read the St. Petersburg Times article and am wondering if there is any difference between Purchase money loan recourse and Refi loans with regard to bankrupcy releases. i come from a non-recourse state (CA) where I understand (and know that I am NOT a lawyer) that Purchase money loaners can't go after the borrower, but once the loan is refinanced the game changes. I'd love to have a California lawyer weigh in on this.

Also, if there is a bankrupcy where the seller has both 1st and 2nd trust deeds, is it true that the junior mortgage can be dismissed by the BK court, but that can still leave the 2nds unsecured promisory note intact? Curious minds want to know....

Apr 05, 2011 05:19 AM

Brad -

I will leave the first paragraph to a CA lawyer, like you said - but my guess is that the refinance changes the rules as the prohibiition on Seller PMM only relates to the Seller and his assigns.

I am also not a bkcy attorney, but you are partially right. IN a Chapter 13 bankruptcy the inferior lenders' lien positions can be compromised to the extent they are found to be unsecured (ie: lack collateral). The unsecured portion of the debt remains, but is treated as part of the general unsecured creditor class.

Apr 05, 2011 01:46 PM

Leslie - If I wasn't so lazy, I would!

Apr 05, 2011 01:48 PM

Kelly Willey

Coco Plum Real Estate, Kelly Willey, FLORIDA KEYS - Marathon, FL

Florida Keys Luxury Sales, Marathon, Key Colony

Great, I plan to read all your linked articles :)

Apr 11, 2011 11:07 AM

C. Lloyd McKenzie

Living Albuquerque - Albuquerque, NM

Living Albuquerque

Thanks for keeping us informed

Apr 13, 2011 02:39 PM

Dave Sullivan

Real Estate One - Birmingham, MI

Michigan Realtor with an investor viewpoint

Great information I did some testing on the MYFICO estamator and found the best level to have your revolving balances and it is not $0 check it out here http://www.thecreditguy.tv/how-to-pay-bills-in-a-way-to-maximize-your-credit-score/

Mar 13, 2012 09:28 PM

DEFICIENCY JUDGMENT AND LOAN DEFICIENCY COLLECTION SLICE AND DICE

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