How does the lender recover legal fees and costs in a foreclosure?

In Florida, a lender may be able to recover legal fees and costs associated with a foreclosure if the borrower does not challenge the foreclosure or if the borrower has signed an agreement that allows the lender to seek recovery of such fees or costs. Typically, the lender recovers these fees and costs from the borrower through the foreclosure sale. When the foreclosure sale is concluded, the lender can file a motion to recover their fees and costs. If the borrower does not respond to the motion, the lender is likely to be granted the fees and costs through a court order. In the event that the lender is unsuccessful in recovering their fees and costs through the foreclosure sale or motion, they may pursue a deficiency judgment against the borrower. This judgment would allow the lender to recover the difference between what was owed on the loan and what was recovered from the foreclosure sale. The lender would then be able to recover their legal fees and costs from any amount received from the deficiency judgment. It is also important to note that a borrower can take steps to avoid having to pay for the lender’s legal fees and costs by attempting to negotiate a loan modification or other form of loan resolution with the lender prior to the commencement of the foreclosure process. Doing so can help the borrower avoid a foreclosure sale and therefore protect themselves from having to pay the legal fees and costs associated with the foreclosure.

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How does the lender recover legal fees and costs in a foreclosure?

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