The Real Deal Miami

Lenders go after property owners

June 10, 2009 12:31PM

As property values continue to decline, lenders are now going after former property owners or development companies who signed off on loans that have gone into foreclosure. Lenders are asking judges for deficiency judgments, court orders that tell the borrower how much he owes the lender after a foreclosure, against the original loan signers. Lender Eastern Financial Credit Union is suing the Merco Group of the Palm Beaches, guarantors on a loan for an unbuilt condominium, to recover more than $30 million in loans.