What is a deficiency judgment in a foreclosure?

A deficiency judgment in a foreclosure is a legal process that can take place in Florida following a foreclosure. Under Florida law, when a person is foreclosed on, the court may order the borrower to repay any money owed in addition to the amount assigned to the foreclosure. This amount is known as a deficiency judgment. For example, if the borrower owes $200,000 on a loan and the court awards the foreclosure for $180,000, the borrower may be responsible for the remaining $20,000. This $20,000 will be due to the lender and is what is known as the deficiency judgment. If a deficiency judgment is entered against the borrower, the lender can then pursue legal action to collect the debt, including wage garnishment or a lien on another property the borrower owns. The lender must first file a complaint in court to receive the judgment. The borrower does have some options, however. The borrower may file an appeal to try and avoid the judgment. Or, the borrower may negotiate with the lender to settle the debt. However, if the borrower cannot reach an agreement with the lender, the court may enter a deficiency judgment.

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What is a deficiency judgment in a foreclosure?

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