Consumer Protection Law
Consumer Protection Law Questions? Ask a Lawyer Now.
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No what he is telling is not the way things normally work. The VR will simply save them the hassle of having to pay someone to repo the motor home and save you the cost of having that bill tacked on to your debt when it is all said and done. The default will still show up on your credit history and they can still sue you for the amount of the unpaid debt. Normally, if they win and get a judgment against you, they can then file a judgment lien against your home. If there is enough equity in your home, they can then foreclose on the home to get the judgment paid.
HOWEVER, in Florida, Article X, Section 4 of the Florida Constitution exempts homestead property from levy and execution by judgment creditors. This means that a creditor cannot force the sale of your homestead to satisfy a judgment. FURTHER, Florida statute Section 222.01 includes a provision by which you may remove a lien from your homestead in the event the you want to sell or mortgage your homestead.
The statute includes a form called a Notice of Homestead which you may record in the county records. The Notice is sent to all creditors who hold a judgment recorded in the county. The judgment lienor then has to initiate a legal proceeding within 45 days to contest the homestead protection. If the creditor fails to file an action within 45 days the lien shall be removed from the homestead so that you may sell or mortgage the property any time during the following 180 days.
So, not to worry, you can ultimately dissolve the lien from your home even if they get a judgment.