Business Week reports that lenders are stepping up their efforts to collect on deficiency judgments of mortgage defaulters. The article reports that banks are seeking deficiency judgments in both short sale and foreclosure scenarios. This stepped up approach by lenders has come as a major surprise to many who have completed a recent short sale transaction.
In the state of Florida, banks have five years to file the deficiency judgment and then 20 years to collect it. To get paid, banks can seize wages and bank accounts and also put liens on other assets.
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CNN Money reports on the growing number of deficiency judgments being pursued by lenders