Can a lender pursue a deficiency judgment in a foreclosure?

Yes, a lender in Florida can pursue a deficiency judgment in a foreclosure. A deficiency judgment is a court order requiring the borrower to pay the difference between the amount owed on the loan and the amount received at the foreclosure sale. In Florida, a lender must wait until after the foreclosure sale to initiate action for a deficiency judgment. The lender must file a separate legal action which seeks to recover the difference between the amount owed on the loan and the amount that was bid at the foreclosure sale. Generally, the lender must file a complaint for a deficiency judgment within five years of the foreclosure sale. However, there are certain exceptions. For example, if the borrower has taken actions that defraud the lender, the deadline to file the complaint may be extended to up to 10 years. In addition, lenders must be aware of certain defenses that borrowers can potentially use to prevent a deficiency judgment. For example, if the borrower can show that the lender did not follow the required procedures for the foreclosure sale or if the borrower can prove the sale was done in a fraudulent manner, a court may not grant a deficiency judgment. Overall, while a lender in Florida may pursue a deficiency judgment in a foreclosure, they must be aware of certain time constraints and that borrowers may be able to use certain defenses to block the deficiency judgment.

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Can a lender pursue a deficiency judgment in a foreclosure?

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