If Ihave property in one state that is in foreclosurebut I live in another state, which state laws apply as far as a deficiency judgement?

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If Ihave property in one state that is in foreclosurebut I live in another state, which state laws apply as far as a deficiency judgement?

How far can the bank go to recover the amount due after they sell my investment property in FL? Can they lien my primary residence in NJ which currently has no equity available? A title company told me they can only take the property but what about a deficiency judgement?

Asked on August 6, 2010 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The law of the state wherein the property is foreclosed should apply. If the property is in Florida, then since Florida law allows deficiency judgements, the creditor may seek this. If they get the judgment in FL, they can look to enforce it in NJ. Armed with the judgment, if you do not voluntarily pay, they could seek to put a lien on NJ property, which lien would have to be paid off when the property is sold, to transfer title. Another option would be to look to garnish your wages. Also, once the bank has the judgment, they can wait several years to try to enforce it, which means they can try to wait until you have more income and/or assets and are more likely to be worth going after to collect.


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