What to do about a deficiency judgment in Florida?

So, if you’re facing a foreclosure and possible deficiency judgment in Florida, consider talking to a foreclosure lawyer.

How does a deficiency judgment work in a foreclosure case?

The lender may also file a separate lawsuit against the borrower for a deficiency, unless the court in the foreclosure action has granted or denied a claim for a deficiency judgment. The judge determines the amount of the deficiency judgment. The court has flexibility regarding the amount of the deficiency.

Can a deficiency judgment exceed fair market value?

The judge determines the amount of the deficiency judgment. The court has flexibility regarding the amount of the deficiency. However, it generally cannot exceed the difference between the judgment amount and the fair market value as of the date of sale, particularly (pursuant to Florida statute) if the property is:

What is the deficiency amount for a foreclosure in Florida?

Say the total amount you owe on your mortgage loan—including outstanding principal, interest, fees, and costs—is $300,000. But your home sells for just $250,000 at the foreclosure sale. The deficiency is $50,000.

What is a foreclosure deficiency judgment mean in Florida?

Deficiency Judgments in Florida. Foreclosures in Florida are judicial, meaning lenders must file a lawsuit in order to foreclose on a property. This is different than in other states that have nonjudicial systems, in which lenders are not required to file a lawsuit. Florida law also allows lenders to seek deficiency judgments. To do so, they must first personally serve the borrower with a foreclosure complaint.

Does Fannie Mae pursue deficiency judgements?

Freddie Mac & Fannie Mae do not pursue deficiency judgments in basically all cases. They have publicly reported that they may pursue a deficiency when the property is an investment property, or they determine that the owners are strategically defaulting.

How does a judgement last in Florida?

How Long Does a Judgment Last in Florida? In Florida, a judgment lasts for 20 years. The time period runs from the day the judgment is signed by the judge and entered by the court. This 20-year timeline is established by section 55.081 of the Florida Statutes. While a judgment can be renewed in Florida for an additional 20 years using a procedure called an action on a judgment, this is uncommon.

How are deficiency judgements collected?

How Are Deficiency Judgments Collected? Once the bank has a deficiency judgment, it may try to collect this amount from you using regular collection methods, like garnishing your wages, levying your bank account, or placing a lien on other property you own. Does Your State Allow Deficiency Judgments? Most states allow banks to go after borrowers for deficiency judgments.

How does a judgment work in the state of Florida?

Under Florida debt collection law, there is no judgment until the judge signs a document entitled “Judgment” or “Final Judgment.” A final judgment in Florida resolves all issues between Plaintiff and Defendant regarding a particular cause of action.

Can a judge enter a deficiency judgment in Florida?

Florida law says that the judge has discretion when entering a deficiency judgment. So, if you’re facing a foreclosure and possible deficiency judgment in Florida, consider talking to a foreclosure lawyer.

Is there a time limit on a Florida judgment?

Presently there is a Florida statute that limits judgment liens to 20 years,3 and there is a Florida statute that limits “actions” on certain judgments to 20 years and other judgments to five years.4 There is, however, no statute or court rule that places a time limit on the execution of judgments.

What’s the life of a money judgment in Florida?

Virtually every lawyer in Florida will tell you that the life of a money judgment 1 in this state is 20 years. 2 Extensive research reveals no judicial or scholarly opinion to the contrary; but that statement is only partially accurate.

What are the remedies for a judgment in Florida?

All of the same remedies are available to Florida judgment creditors whether the judgment is from a personal injury suit, foreclosure deficiency, debt collection suit, or any other type of civil case.