Florida Homeowners

waitingforanswers

LoanSafe Member
Apr 29, 2012
6
0
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My brother lives in Florida. He is still in the foreclosure process. It was a strategic walk away that went completely wrong. The Second Mortgage sued him for breach of contract instead of foreclosure. Where does it say in the law that they can sue him before the property is sold in foreclosure and there is a deficiency judgement. Florida Statutes 697.01 states that all mortgages shall be subject to the same rules of foreclosure. They tried to garnish his wage, but in Florida if you are the Head of Household, they cannot garnish your wage. The Second Mortgage has a lien on all his assests because of the judgement. I just filed a complaint with the OCC against the Second Mortgage. I also requested the independant foreclosure review since the first mortgage lender has taken almost four years and still haven't foreclosed on the property. I want to see if I can get my brother anything out of this big $26 billion settlement with the bank. Don't give up, fight back.
 

IsaacFL

LoanSafe Member
Jun 20, 2012
3
0
0
Although I'm not a FL property owner, I post this as a caveat about FL law in regards the options afforded a junior lender.

As many of you know, FL affords secured junior lenders the option of either FCing on their loan, or suing the borrower for breach of contract on that loan. FL and MD are the only states I know of that allow a lender to do that.

This can present a bad situation for an owner of property that is encumbered with a junior loan mortgage, and who also owns other assets. Why? Because it is more likely the underwater junior lender will sue and get a judgment that can attach to any and all of the debtor's assets.

That lender will frequently analyze a debtor's credit file to determine what other assets the creditor might own. Then, if it appears the creditor is more likely to recover some $$ owed on its loan, it can sue now in lieu of waiting for years and hoping their junior loan will ever again be in the money.
Our 1st (FNMA) has foreclosed on our property with the sale date on the 26th. So our 2nd (BOA $115,000) will now be a sold out junior. Will BoA still be able to sue for breach of contract?
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
Our 1st (FNMA) has foreclosed on our property with the sale date on the 26th. So our 2nd (BOA $115,000) will now be a sold out junior. Will BoA still be able to sue for breach of contract?
IsaacFl

Welcome to Loansafe. BOA is not legally barred from suing you.
 

lwillhite

LoanSafe Member
Dec 21, 2010
149
1
18
Charlotte, NC
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