New Florida Mortgage Foreclosure Deficiency Law to Go Into Effect

Luckily though, the new law now means that you only have to wait a year to learn your fate, which can be a huge relief and will surely help many from being forced into bankruptcy years after their home was foreclosed upon.

This new law actually went into effect last year on July 1st, but at that point it only applied to any foreclosure proceedings that were filed after that date, meaning that even if your home was foreclosed on more than three years ago, you may still be subject to a lawsuit at some point. However, if your foreclosure lawsuit was filed before any time in the four years leading prior to the new law going into effect, then the bank has a deadline of July 1, 2014 to file the lawsuit.

What this means is that no matter when your home was foreclosed on, you will soon know whether or not your mortgage lender will be suing you for the remaining balance of your mortgage. This law is overall great news for anyone who’s suffered the embarrassment of a foreclosure, as by decreasing the statute of limitations for filing a mortgage foreclosure deficiency lawsuit from five to one year, Florida has taken a huge step towards protecting homeowners and hopefully working to lessen the serious problem foreclosures have been causing in the state.

Still, if you do receive news that the bank is pursuing this type of lawsuit against you, you’ll want to discuss all of your possible options including filing for bankruptcy with a professional bankruptcy lawyer. At The Law Office of Kelley Kaplan & Eller, we have over 25 years of experience helping people just like you find the right solutions to their financial problems.