Foreclosures, like any other real estate process, are something that you should not try and tackle on your own accord or by Googling your problem. For instance, do you know what to do if served a deficiency statement? The bank has five years from the date of the foreclosure sale to take the deficiency judgment if they are going to take one at all. If the bank takes the deficiency you have three choices, do nothing, and just let the judgment sit and fight any attempts at asset collection or wage garnishment by claiming exemptions, negotiate a payoff of the judgment, or file bankruptcy. Florida law states that if the foreclosure sale does not cover the balance due the lender must sue the borrower.
This timeline begins after the summary judgment hearing, approximately 45 days later. The foreclosure sale date will be about 75 days into the foreclosure process and shortly after the lender can sue the borrower to get a deficiency judgment for the remaining cost of the loan. Without adequate defense techniques, the home could be lost in a shorter amount of time than this, which is where the three options come in. If this is the case, it’s unlikely that means that you will be able to just walk from your home. Lenders do have the option to come after homeowners even after the auction sale. Most real estate attorneys will attempt to protect both the home and its owner by fighting the judgment, negotiating payoffs, or declaring bankruptcy.