First mortgage deficiency judgments are the exception, but there are certain exceptions. One exception is when the homeowner purchased an unimproved lot in a property developed by the Ginn Development Company owned by Bobby Ginn. The Ginn projects include Bella Collina and Reunion Resort. These developments suffered terribly in the real estate recession. Clients have reported depreciation of between 75 and 90% . Ginn has been named in several private lawsuits.
Up to now, two lenders active in Ginn communities, BB&T and RBC, have pursued deficiency judgments for first mortgage deficiencies. This week, an attorney who defends mortgage foreclosures reports that SunTrust is joining the pursuit. Apparently, SunTrust is starting to actively file deficiency lawsuits against owners in Ginn communities. The SunTrust procedure is to initially send owners demand letters after the foreclosure sale. If the owner does not make a significant payment offer SunTrust will file a lawsuit.
There is no indication that SunTrust or the other Ginn community lenders is changing its overall deficiency policy. The more aggressive policy so far applies only the Ginn community investors.
Page last updated on May 22, 2020