Will the bank pursue you for a deficiency in Florida? They certainly can, but you can stop them!
Did you know that if your Florida home forecloses, your financial problems are far from over? In Florida, the lender can be granted a deficiency judgment after foreclosure and pursue you for their losses.
What is a Florida deficiency judgement?
A deficiency judgement is a court order allowing a lender to collect additional money from a debtor whose home has been foreclosed, when the foreclosure sale price isn't sufficient to pay off the entire debt, including mortgage and foreclosure costs.
FOR EXAMPLE: If you owed $400,000 on your Florida home, didn't make the mortgage payments, and the home foreclosed and sold for $350,000…the missing $50,000 (along with late fees, legal costs, etc) would be the amount of the deficiency the lender can pursue after they foreclose. Florida state law allows lenders a year to sue for a deficiency judgement after foreclosure. The lender can then use this judgment to try to collect the additional funds.
If you are facing foreclosure in Florida and wish to avoid a deficiency judgment, the best way to accomplish this would be to complete a short sale.
A short sale allows you an opportunity to negotiate how the extra debt from your mortgage is settled and to ideally get this deficiency balance waived. Short sale approval letters specifically spell whether or not the deficiency is being waived, or whether retains their right pursue the deficiency.
Carefully review your short sale approval letter, and if the terms are not to your approval, you may renegotiate. My ultimate goal as your Jacksonville Short Sale Realtor is always to have the short sale approved at terms most beneficial to you - which would be to settle the account in full and have the deficiency balance forgiven.
There are some very rare situations in which the lender(s) will not waive their right to pursue a deficiency and then it will be your decision whether to proceed with the short sale or not. A short sale negotiated by an experienced agent is your best chance of settling your Florida mortgage debt on your terms, preventing a foreclosure and having the deficiency balance forgiven.
Minna is, without a doubt, the VERY BEST OF THE BEST!! She is extremely knowledgeable, responsive, and efficient; there aren't enough superlative adjectives to describe how Excellent she is at her job! I have another house that I am selling and I wouldn't even think about hiring another Realtor/Broker - why would I, there is NO ONE better than Minna and her team !
J.S.
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Last Updated on November 10, 2025 by Minna Reid
