Having to endure the foreclosure process can be a difficult experience. You’ve had to relinquish your home, find new lodging, and tolerate months of paperwork and phone calls from the bank. Just when you think it’s all over, suddenly you hear the term deficiency judgment. A deficiency judgment is a judgment against a borrower whose mortgage foreclosure sale did not make enough money to cover the underlying promissory note.

So, what does this mean for you? You, the borrower, could possibly owe money after your foreclosure process is over. If the bank cannot sell the house for enough money to cover what you borrowed to purchase it, then they can come after you for the remaining balance.

If your loan was sold to a servicer, or a debt-collector, you may still find yourself facing a deficiency judgment. Regardless of the bank name listed on the court documents, they are still in good standing to collect the judgment against you. If you owned a condo, there are some differences – but the ultimate responsibility will still fall to you. The condo association – or trustee – will be named as the owner of the property, however you will be entitled as the borrower; putting the financial obligation on your shoulders.

If you are facing foreclosure, or have already begun the process, it is best to seek out an experienced lawyer. They will be able to foresee any liabilities you may still have to a HOA or condo association, negotiate a waiver to the deficiency claim, or defend you against a claim that has been already filed.

Stephen K. Hachey, a Florida foreclosure attorney, can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.