Florida Deficiency Judgment Law

Foreclosures in Florida can be conducted exclusively by judicial foreclosure.  A deficiency is created when a lender forecloses on a property and receives less than what was owed on the property.  A deficiency judgment is created when a lender sues and gets a judgment on the amount still owed on the loan after the foreclosure.  Florida has the following restrictions on obtaining a deficiency judgment:

  • A lender may include a deficiency action in a foreclosure action;
  • Whether to allow a deficiency judgment is at the Court’s discretion; 
  • In the case of an owner-occupied residential property, the amount of the deficiency may not exceed the difference between the judgment amount, or in the case of a short sale, the outstanding debt, and the fair market value of the property on the date of sale (Florida Stat. Ann. Section 702.06).

What the fair market value of a property is can be difficult to determine and the homeowner and the mortgage company will likely disagree as to that value.  If you live in Florida and have questions about whether your particular situation might give rise to a deficiency judgment, speak to an attorney in your area for specific guidance.  Or continue searching this site for potential foreclosure options

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