Well, well, well!! BANK OF AMERICA has now removed money from one of my sellers accounts in FLORIDA!!! THIS IS DARN FRIGHTENING!!!
Florida is an asset protection state. There are many asset protections available to Florida residents. Bear in mind, that asset protection does not apply to people who buy second homes here but are not residents, like snowbirds. You must claim your homestead in Florida to get asset protection.
I am not an attorney and I am only speaking based on what our clients' attorneys tell us as well as what I have experienced during and after a nasty divorce. My attorney told me that in Florida the banks who hold mortgages, because Florida is a deed state, not trust deed state have to physically take your house away from you through a judge's order. After the foreclosure, or after a failure to pay a promissory note, the lenders can seek a judgment against you in court if you don't have a fully satisfied paid in full no deficiency agreement in your short sale acceptance letter.
After they get a judgment they seek to collect.
Collection law in Florida does allow for different collection methods. We don't have state income tax so they can't get your tax return money from the state like they can in CA.
Collection laws protect the head of household who earns the money for his or her family.
In Florida, they can not get the bread earners money. But they can go after the non bread earners money but only a portion of it. But they can make a mistake.
That happened to me. On a bad credit card my x stole and did not pay, he forged my name, I did not pay it. They got an order to garnish my bank account. My attorney told me they did this illegally. So I went to court, and the judge dismissed their case, punished them by not allowing them to seek to collect from me and ordered the bank to release my money. I was the single parent with custody at that time.
So mistakes can happen. I tell everyone the same thing.
Since Florida is not a community property state and many times only one spouse is on the mortgage note- they can put the money in the account of the one who is NOT on the mortgage. You can NOT go after both spouses in Florida unless both are on the note.
Remember Florida agents- The only people who can attach liens on a person's homestead are:
The IRS, The state property tax dept, the mortgage company, HOAs and mechanic liens. Those are also the only entities that can foreclose on a property that is a homestead property in Florida. That is highly unlikely to change, we have too many people with money who come to live in Florida for the asset protection.