Banks Are Going After Deficiency Judgments

Even in short sale situations.  I am copying and pasting what I feel is important because I am not an attorney. 

“Once they have a judgment, they can pursue you anywhere,” said Richard Zaretsky, a board-certified real estate attorney in West Palm Beach, Fla. “They can ask for financial records, have your wages garnished and, if you fail to respond, a judge can put you in jail.”  

“What can be scary is that the judgments don’t have to be obtained immediately. Lenders or collection agencies may wait until debtors have recovered financially before they swoop in. In Florida, the bank can wait up to five years to file. Once the court grants a judgment, the lender has 20 years there to collect, with interest.”

I think you are going to see people buying these judgments for pennies on the dollar and going after everyone just to try to get something.  I believe this is already starting to happen.

http://money.cnn.com/2010/02/03/real_estate/foreclosure_deficiency_judgement/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29