Post-Foreclosure| Deficiency Payments Running Amok

Written By: Louie Talacay

blick-law-firm, tampa-law-firm copyNausea, sleep-deprivation, stress, anxiety, hypertension, headache and depression: one might believe that someone suffering from these conditions is severely ill, but these are actually symptoms of an unexpected deficiency payment.

The deficiency sneaks up on them like a phantom from the past. It stalks the borrower years after they have forgotten about their abandoned home and strikes only after they’ve seemingly gotten back on the road to financial stability.

It’s a vicious cycle that never seems to end. Borrowers struggling to recover from financial distress stand up only to be knocked down again. They endure a terrifying maelstrom, seeing the break in the clouds only to realize that they are just in the eye of the storm.

Many larger lenders are now seeking deficiency payments from foreclosed borrowers. What was once an uncommon practice now seems to be commonplace, especially with the federal lending giant Fannie Mae. The surge of deficiency suits have grown exponentially like bacteria festering when times are opportune. Regulations in some states have limited the timeframe in which banks can seek deficiencies. The resultant has been the creation of debt collection factories that mimic the expansive foreclosure mills which steamrolled homeowners out of their homes and livelihoods.

Well hold your horses Fannie Mae! Borrowers are wising up and seeking counsel. They are being meticulous and weighing their options. They won’t be taken advantage of any longer. For borrowers that have been unscrupulously served a deficiency payment the following options are available:

1. Seek out a lawyer for general counsel and advice

2. Hire a lawyer to negotiate a settlement and take care of that debt once and for all

3. Take the lender or the debt collector to court for unfair and unjust practices

4. Bang the gavel and say sayonara to any deficiencies by filing for bankruptcy

Be aware of your options and don’t be victimized again. Seek counsel with an attorney that is familiar with debt collection practices at our office today and get a free consultation with an Tampa Bay attorney over 25 years!

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