When someone has had his or her home foreclosed on, that person may take some time to get back on his or her feet and move forward. However, a change in the law that determines the timeline for collecting deficiencies related to back-due mortgage payments has meant that many homeowners are being surprised with bills related to home foreclosure action that took place years ago. The Florida homeowners who may have been moving forward may now be getting bills in the mail.
The law used to be that companies had five years to pursue unpaid debt. Now the law gives companies one year to pursue such debt, which has spawned the newfound urgency in attempts to collect that debt. Most lenders never bothered, due to the fact that attempts were pointless when a person already had nothing and had lost the home. However, now that the economy has improved, those who had no means of paying back the debt may now be able to do so.
The debt can be sought through various means, including garnishing wages of the debtors. One person who lost his home to home foreclosure was recently served with a bill for $84,000. Other former homeowners are being served with bills around $100,000.
The home foreclosure process in Florida overall can be confusing and entail a great deal of paperwork and time. Anyone who has gone through a home foreclosure may want to understand what kind of debt they may legally be bound to pay back at any given time. Anyone who has trouble maintaining a current mortgage, or is unclear of their rights when it comes to keeping their home, may also want to know their options and what to expect if they are faced with home foreclosure.
Source: The Palm Beach Post, “South Florida residents served with second foreclosure nightmare years after home is taken“, Kim Miller, Aug. 6, 2014