[dawn53]

I think these folks that told me about it had the defiency judgment on their original mortgage, but it was with a smaller bank.

In Florida prices have dropped about 50 percent from the peak in 2006. These folks did it right, put large down, affordable payments...until unemployment took it’s toll.

Sad part is the bank absolutely would not work with them on lowering interest rate (they weren’t asking for principle reduction.) And in Florida where our insurance seems to go up every year, and assessments downward haven’t kept up with the market so taxes are still pretty high, it’s pretty hard for folks that lose their income. So they sold on a short sale, the bank okayed a low ball offer, and then hit them with the deficiency judgment.

I sort of agree with this type of judgment but wonder why the bank isn’t willing to deal with the present homeowner who’s current on their mortgage but struggling.

[PUGACHEV]

The link below provides an answer in some of the cases.

http://www.youtube.com/watch?v=ssl5yb7FewA

[CatoRenasci]

The only way to deal with lenders who play hardball is to play hardball as well: bankruptcy may be unpleasant, but it does make deficiency judgments go away. Lenders like the smaller bank rely on borrowers' unwillingness to file bankruptcy.

Anyone whose loan is underwater, and is contemplating trying to get out of the situation should get a referral for a good local lawyer experienced in representing debtors. A few hundred dollars for a consultation may be the best money you've ever spent. But, make sure you get a good lawyer, referred by someone you trust.

[driftdiver]

“I sort of agree with this type of judgment but wonder why the bank isn’t willing to deal with the present homeowner who’s current on their mortgage but struggling.”

Because they don’t want to set an example of forgiving the loan.

Also because they profit greatly when the house is foreclosed on. Not through the property but all the backdoor stuff.