Can the lender come after you for the rest? Deficiency judgments in Florida

Deficiency rules in Florida, point by point

• Florida foreclosures go through court, and the judge decides

  At the end of the foreclosure case

  Florida law leaves a deficiency decree to the sound discretion of the court. The lender can ask for it in the foreclosure case, and the judge can grant it, limit it or deny it.

  Fla. Stat. § 702.06

• Fair market value cap for owner-occupied homes

  At the deficiency hearing

  For an owner-occupied home, the deficiency cannot be more than the judgment amount minus the fair market value of the home on the sale date. If your home had a homestead tax exemption before the case was filed, the law presumes it was owner-occupied. Bring proof of value, such as an appraisal, if the lender asks for a deficiency.

  Fla. Stat. § 702.06

• 1 year deadline for 1 to 4 family homes

  Within 1 year after the certificate of title or deed in lieu

  An action to collect a deficiency on a mortgage note for a 1 to 4 family home must be started within 1 year. The clock starts the day after the clerk issues the certificate of title, or the day after the lender accepts a deed in lieu of foreclosure.

  Fla. Stat. § 95.11(6)(g)

• A separate lawsuit is possible, but only once

  After the foreclosure case

  The lender may sue separately for the deficiency instead of asking in the foreclosure case. It cannot do that if the foreclosure judge already granted or denied a deficiency claim.

  Fla. Stat. § 702.06

• Short sale and deed in lieu

  When you sign the agreement

  For a short sale of an owner-occupied home, the same cap applies: the outstanding debt minus the home's fair market value on the sale date. The 1 year deadline also applies after a deed in lieu. Beyond that, your written agreement controls, so look for clear words that the lender waives any deficiency.

  Fla. Stat. §§ 702.06, 95.11(6)(g)

• How long a judgment lasts and how it is collected

  Up to 20 years

  A recorded judgment becomes a lien on real estate for 10 years and can be extended for up to 20 years in total. If you are a head of family who provides more than half the support for a child or other dependent, wages of $750 a week or less are exempt from garnishment.

  Fla. Stat. §§ 55.10, 55.081, 222.11

• If you get a deficiency motion, letter or lawsuit

  Right away

  Check whether the 1 year deadline has passed and what value the lender used for the home. Use Florida Law Help: Find a Provider or The Florida Bar Lawyer Referral Service listed on our Florida foreclosure help page before the hearing date.

The short answer in Florida

Common questions in Florida