Well you have heard that it’s not over until it’s over! Many Americans are finding out that it is not over.
Home owners that went thru a foreclosure and walked away from their home had thought that it was over. The lender had foreclosed and got the home back and turned around and sold it, but in most of these cases when the lender ended up selling the home there was a “deficiency” and most homeowners just thought that it went away. Thousands of Americans have spent the last several years rebuilding their finances and thought things were back to normal.
Now out of nowhere Banks and Mortgage companies (Fannie Mae and Freddie Mac for the most part) have started coming after them again and they are finding legal papers being served against them for a “Deficiency Judgment”.
Lenders using a legal tool called a deficiency judgment borrowers can be haunted for years as wages can be garnished and assets can be seized. The only way out of this is to file for bankruptcy protection.
In Florida alone in this year at least 10,000 lawsuits have been filed. One attorney that I read about stated that in 2013 he had filed only 3 deficiency judgments for lenders and now this year he has filed 360. This is on the upswing and is far from over as lenders try to recoup Millions of dollars that they lost.
How do you think this is going to affect the housing recovery? Please give me your comments down below.