When the housing market took a turn for the worst, the effects were felt far and wide across our nation. Many of us were directly affected or knew somebody that was. Foreclosure signs were popping up on every street and sadly, many people lost their homes. In the wake of such financial disaster, many laws were amended and changed including Florida’s Deficiency Law in 2013.

If you are familiar with real estate foreclosures and short sales, you may already know the general basis of the Deficiency Law. But for many, terms such as “underwater” meant little more than the location of Atlantis or where one ends up after jumping into a pool. So to ensure that we are all on the same page, let’s look at what Florida’s Deficiency Law meant before the amendment.

Under the old law, if a home was sold as a short sale or under foreclosure for less than the balance of the mortgage, mortgage lenders had five years to ask the courts for a deficiency judgment against the borrower. In other words, mortgage holders could seek to hold the borrower legally responsible for paying the difference between what the bank made from the sell of the home and how much the borrower still owed on the mortgage.

This concept of seeking a money judgment from the courts is still the bulk of the Deficiency Law. What has changed, however, is the amount of time mortgage lenders have to request a judgment against a borrower. Under the amended Deficiency Law, mortgage lenders now only have a year to seek a deficiency judgment on homes sold after July 1st, 2013.

Now, it would seem straightforward if the previous law governed homes sold prior to the July 2013 deadline while the new law pertained to homes sold after this date. But it isn’t that simple. In fact, the new law affects many homes that were sold prior to July 1st, 2013 if the five-year period did not expire prior to July 1st, 2014. So what does this mean?

Let’s say your house was foreclosed on March 28th, 2013. Since that date falls before July 1st, 2013, the old law applies to any deficiency that results from the sale and allows your mortgage broker to seek a judgment until March 28th, 2018. However, this date falls well after July 1st, 2014. With the amendment in place, the new deadline for your mortgage lender becomes July 1st, 2014.

On the other hand, if you sold your house at a short sale on March 28th, 2009, your mortgage lender would have until March 28th, 2014 to seek a deficiency judgment. Although this date is after the amendment date July 1st, 2013, the date falls prior to the July 1st, 2014 deadline so it is unaffected by the change.

In all cases, however, if a mortgage lender seeks a deficiency against you, it is important to consult with an attorney.

Stephen K. Hachey, a Florida real estate attorney, can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.

The search is over and you have finally found your next rental property to call home. You pay your future landlord a hold deposit to reserve the property and are just about ready to sign the lease when you receive a notice. The landlord has decided not to rent to you, but instead has decided to sell the property. Can the landlord legally keep your hold deposit despite being at fault for backing out of the deal?

When it comes to any disagreement between a landlord and a tenant, a complicated situation can arise quickly and often money is on the line. Like most legal situations, it is advisable to consult with an attorney, but often, the money in question may be less than what you would end up paying in attorney fees. This is frequently the case with hold deposits.

A hold deposit is an amount of money paid by the tenant to the landlord in order to reserve the property until the tenant is able to move in. This type of deposit is often used when a tenant finds a property they like but are unable to move in right away. When the lease is finalized and the rental period begins, the landlord then must use the holding deposit to put towards rent or a security deposit.

In the event that the tenant chooses not enter into a rental agreement with the landlord, the tenant forfeits his or her hold deposit. In other words, the hold deposit is meant to protect the property owner from any loss sustained from taking the rental off the market if the tenant fails to follow through with the rental.

It is evident then that the landlord does not have the legal right to the hold deposit if he or she terminates the hold. There are a few exceptions, however. Any time a hold deposit is made, the landlord and tenant should both sign an agreement. This agreement should list any and all reasons the landlord would keep the deposit. If the agreement were to include a stipulation stating “the landlord should keep the deposit should the property move from rental to sell”, then by all means, yes the landlord can keep the deposit. While each case differs individually, in the majority of cases, if a landlord decides to terminate a hold and instead sale the property, the landlord cannot legally keep the hold deposit.

Stephen K. Hachey, a Florida real estate attorney, can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.

While going through a divorce, there are many questions to be answered as to whom gets to keep what in terms of assets acquired during the marriage. Properties and homes are a big concern when it comes to dividing those assets during the dissolution.

Many couples are able to settle a divorce and the division of assets amicably without the chaos a lot of soon to be spouses endure. For homeowners, it is good to know how to transfer one spouse’s interest to the other before the divorce proceedings get underway.

It is a common question as to whether the interest can be transferred from one spouse to the other via quit claim deed. Although the answer is yes, most attorneys advise against it. Instead, a warranty deed helps you maintain the title insurance guarantees without risking a future buyer’s disapproval when they see that the home was transferred via quit claim. Once the deed is transferred, be sure to have it recorded with the clerk of the court.

If there is a mortgage involved, it is a good idea to check into refinancing the home once the deed is transferred. By doing this, it will release the other spouse from the obligation. If a refinance is done before the deed transfer, both can be done when the refinance closes. Speak to an experienced attorney to help you navigate the process so that the timing of all actions in appropriate.

Stephen K. Hachey, a Florida real estate attorney, can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.