A Motion for Deficiency Judgment has been filed in my old foreclosure case by Vantium Capital, what does it mean?
I have been running into this question more and more in my consultations relating to post-judgment foreclosure actions for the past few months, so I wanted to take a few moments to really speak as to who Vantium Capital is, what a motion for deficiency judgment is, and how it can effect you after your foreclosure action was seemingly behind you (you may have even thought that the debt was discharged if you received a 1099). This is happening in literally thousands of cases throughout Florida and is a very serious motion. If you have discovered that this motion has been filed in your previously closed case, it is important to speak with a debt relief attorney that is familiar with the different options that you have available and may help your situation.
Who is Vantium Capital?
Vantium Capital is a Delaware corporation that recently changed its name to Clearspring Loan Services, Inc. They are currently in the process of purchasing the rights to judgments in old foreclosure cases, and will try to substitute into old foreclosure cases after taking over the loan that was the subject of your old foreclosure suit. This technically allows them to try and enforce the rights to the difference between what the judgment amount was in your case and the value of your property that was sold at a foreclosure auction or, more commonly, the deficiency. They are subject to the same statute of limitations as other banks and creditors in foreclosure cases and may have filed motions as late as June 30, 2014.
What is a Motion for Deficiency Judgment?
A motion for deficiency judgment is part two of a most foreclosure lawsuits. Part one was the law suit that decided whether the bank could legally take your property back after a missed payment. After judgment was entered, and your property was sold, the bank had a right, subject to some exceptions, to go after you and the other note signors personally. The bank is required to do this by motion if they do so in the same lawsuit that the foreclosure took place in. Generally, they must prove to a judge the value of the property that was sold on the date of the foreclosure action. You have a right to contest this, and can provide evidence that goes against the value that is being offered by the bank, or in this case, Vantium Capital Inc. It is important to remember, though, that a judgment against you can be in excess of what was initially alleged. A big portion of your defense will rely on either the value of the property at the time of the foreclosure sale or your ability to settle the deficiency amount prior to a final evidentiary hearing on the merits of Vantium’s motion. Also, there is a finite amount of time that this process takes, so it is important that you act quickly or else fees and other costs can increase the amount Vantium is either willing to settle for or gets in its final judgment.
How can it affect you after a judgment.
Basically, if Vantium Capital is able to get an actual judgment as to the deficiency amount, they can then either garnish your wages or bank accounts, attach liens to your real or personal property (with a few exceptions), and otherwise make your financial life miserable. A judgment may also force you into bankruptcy, depending on other debt and income related factors.If you are interested in exploring your options in relation to the motion for deficiency judgment that was just filed, please contact my office at 813.677.1112 or email me to set up a consultation.