January 31, 2019

A guide to understanding deficiency judgments in Florida and how to avoid one.

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Did you know that if your Florida home forecloses, the lender can be granted a deficiency judgement and pursue you for their losses​?

What is a Florida deficiency judgement?

If you owed $​400,000 on your Florida mortgage, and it foreclosed and sold for $350,000…the missing $50,000 would be the deficiency. Florida laws allow the lender a year to sue for a deficiency judgement​.

If you are facing foreclosure in Florida, your best bet to avoid a deficiency judgment is with a short sale.

​A short sale allows you an opportunity to negotiate how the loan is settled and to ideally get this deficiency balance ​waived.

​Short sale approval letters specifically spell w​hether 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​.

As your short sale agent, I always seek 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.

I can't recommend Minna enough for a short sale! She eased my mind during the entire process and followed through 100% from day 1 to the closing. She and Jaime handled everything flawlessly. I am so grateful to Minna and Jaime for all that they did to help us through this process.

Casey

Minna Reid

Minna Reid is a Broker Associate at Florida Homes Realty & Mortgage, serving northeast Florida.

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