According to the new Florida Fair Foreclosure legislation, the deadline for a bank to sue a defaulting home owner for the amount left on a mortgage after a foreclosure (the deficiency) was changed from 5 years to 1 year, regardless of when the cause of action accrued. (See our earlier post for details.)
Before this new law was passed, Florida banks had 5 years after the foreclosure sale to seek a deficiency judgment. After the new law, lenders must file their deficiency claim within one (1) year of the date of the foreclosure sale.
When does this become effective? July 1, 2013. For all deficiency actions filed after that date, they must be filed within one year of the foreclosure sale. For older foreclosures, the banks have until July 2014 to seek a deficiency judgment.
- Is a Dyck O’Neal Lawsuit Valid if it is Served After July 1, 2014?
- Did You Get A Letter From A Debt Collector For A Florida Mortgage Deficiency Related to a Foreclosure Or Short Sale?
- Can a Florida Bank File a New Foreclose Lawsuit 5 Years After Your Case Was Dismissed? When is a Florida Bank Foreclosure Lawsuit Barred by the Statute of Limitations?
- Dyck-O’Neal Increases Florida Deficiency Judgment Collection Efforts?: 19 Articles About Florida Deficiency Judgments
Smaller South Florida Banks and Credit Unions Are Aggressively Pursuing Foreclosure Deficiency Judgments
Based upon our experience in South Florida, there are more and more Florida home owners who are concerned about deficiency judgments because of past foreclosures and short sales. Some of those concerns relate to:
- Are they going to be sued for a deficiency?
- What is the procedure for a bank to collect a deficiency?
- What assets are subject to the bank’s collection efforts?
- Do they have defenses in a Florida deficiency action?
- Is the time deadline (“statute of limitations”) a defense available to them against the bank?
These issues are particularly important for those who have home loans with smaller financial institutions in the area, such as:
Local foreclosure defense law firms like ours have seen smaller banks and credit unions become much more vigilant than some of their big bank competitors in going after deficiency judgments against current and former Broward, Miami Dade County, and Palm Beach County homeowners. The main reason for this, we believe, is because these institutions didn’t receive a government bailout.
Unfortunately, we are starting to see motions for deficiency judgments being filed by bank lawyers for these smaller institutions for foreclosures that occurred several years back.
July 2014 is the deadline that they’re trying to beat.
Larry Tolchinsky’s Tip:
If you have a foreclosure involving any of the following South Florida financial institutions, then you may want to check with a Florida foreclosure defense lawyer to see how the new July 2014 deadline may impact your case:
- American Airlines Federal Credit Union
- Baptist Health South Florida Federal Credit Union
- Dade County Federal Credit Union
- Electricians Local 349 Credit Union
- Financial Federal Credit Union
- First Florida Credit Union
- Florida Transportation Credit Union
- Jetstream Federal Credit Union
- Miami Federal Credit Union
- Miami Firefighters Federal Credit Union
- Miami Postal Service Credit Union
- Navy Federal Credit Union
- Peoples Alliance Federal Credit Union
- Peoples Credit Union
- Power Financial Credit Union
- Ryder System Federal Credit Union
- Shaw-Ross Employees Credit Union
- South Florida Educational Federal Credit Union
- South Florida Federal Credit Union
- Space Coast Credit Union
- St. James AME Church Federal Credit Union
- Tropical Financial Credit Union
- United Police Federal Credit Union
- University Credit Union
- 1st National Bank of South Florida
- 1st United Bank
- American Momentum Bank
- American National Bank
- BB&T Banking
- BAC Florida Bank
- Bank of America
- BankAtlantic, A Federal Savings Bank
- BankUnited FSB
- Bay Bank & Trust Co.
- BB&T Bank
- Beach Community Bank
- Beneficial Savings Bank
- Capital Bank
- CBC National Bank
- City National Bank of Florida
- Coastal Bank and Trust
- Coconut Grove Bank
- Commerce Bank
- Community Bank of Florida
- Compass Bank
- Delta National Bank
- Desjardins Federal Savings Bank
- Drummond Community Bank
- Eagle National Bank of Miami
- Enterprise National Bank
- Espirito Santo Bank:
- Executive National Bank
- Farmers & Merchants Bank:
- First America Bank
- First Bank Florida:
- First Bank of Miami:
- First Citizens Bank:
- First Federal Bank
- First National Bank of South Florida
- First National Bank of South Miami
- First Southern Bank
- First United
- Flagler Bank
- Great Eastern Bank of Florida
- Gulfstream Business Bank
- Hancock Bank
- Helm Bank
- Intercredit Bank, N.A.
- International Finance Bank:
- J. P. Morgan FSB
- Marshall & Isley Bank (M&I Bank)
- Mercantil Commerce Bank
- Northwest Savings Bank
- Ocean Bank
- Pacific National Bank
- Plus International Bank
- Regions Bank
- Sabadell United Bank
- Security Bank, National Association
- Southeastern Bank
- Stearns Bank
- Stonegate Bank
- SunTrust Banks, Inc.
- TD Bank
- Terrabank, National Association: Miami, Hialeah
- The Citizens Bank
- Trustmark National Bank
- U.S. Century Bank
- United Southern Bank
- Warrington Bank
- Wauchula State Bank
- Whitney National Bank
Do you have questions or comments? Then please feel free to Chat with Larry in the comments below, at firstname.lastname@example.org, or (954) 458-8655. If you have a specific or personal situation, please call or email Larry because he can’t answer specific fact questions in general comments.