As short sales continue to provide a means of allowing homeowners to escape the heavy costs associated with their Miami Beach homes, lenders that agree to accept a fraction of the original costs have the option of getting what’s owed to them.  While some homeowners have reached written agreements with lenders regarding unpaid balances, those days may soon become a thing of the past.

With the ever increasing popularity of short sales and foreclosure auctions, lenders are getting ready to file lawsuits against homeowners as a way to recover losses when these types of sales fail to earn enough money to pay the mortgages in full.  Property like Miami Beach homes that are sold under such circumstances here in Florida are subject to Florida law which allows lenders to file something called “deficiency judgments” and spend the next twenty years getting their money.

Such news causes significant concern but for the most part, good faith negotiating and a genuine hardship such as job loss will keep lenders from taking such extra measures.  Just remember that if you own Miami Beach homes and are planning to take the short sale route, make sure that whatever agreement you reach with the lender is in writing.