Second Wave of Foreclosure Hits South Florida
Written by Emil Fleysher | September 11, 2014 | Debt
Many residents in South Florida are confronting a new wave of foreclosure consequences as banks attempt to secure unpaid mortgage debts from foreclosed homes that were lost years ago. Beginning June 1st nearly 110 alleged deficiency judgments were filed by Dyck O’neal, a Texas-based collection company, in Palm Beach County, 200 in Miami-Dade County, and 300 in Broward County. It is believed that because the deadline changed from 5 years, in order for banks to file a deficiency judgment, to one year this has triggered the hasty lawsuits.
Deficiency judgments allow the banks or companies that were sold the mortgage debts to, to go after the dividend of what the home was auctioned for and the remaining balance that the homeowner is still accountable for. The Palm Beach Post found many occurrences where the bank is coming after the previous homeowners for more the $100,000 – a debt that can be seized by means of liens, claiming rights over investment properties, and garnishing your wages.
Deficiency judgments are not a new ruling and the possible risk as always hovered over our heads; however, banks saw it as pointless to pursue homeowners with little money and were too overwhelmed by the amount of foreclosure to exercise this ruling. But since the economy has improved lately, lenders have sought this as the chance to collect the debt owed.
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