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If my home is foreclosed on in Florida will I face a deficiency judgment?

If my home is foreclosed on in Florida will I face a deficiency judgment?

Full question:

Our residency is in Wisconsin. We are contemplating foreclosure on our second home in Florida. We understand that Florida Law allows for deficiency judgments, and that judgment can be filed after foreclosure. It is conceivable that the foreclosure sale price will be less than the the amount owed the bank. Our question are: 1. Would we be liable for the difference between the sale price and the amount we owe on the house, even if the value of the house far exceeds the amount owed? 2. Would we have to face a deficiency judgment in Florida, and are there ways to avoid it? 3. If the ruling is against us, what assets are in danger, and are they allowed to go after our other assets?

Category: Real Property
Subcategory: Foreclosure
Date: 04/07/2025
State: Florida

Answer:

The value of the house won't prevent a deficiency judgment. Information on your question is below. If you would like us to forward your request to an Attorney Network we work with for further assistance please let me know and I will do that for you.

http://definitions.uslegal.com/d/deficiency-judgment/

http://www.bcsalliance.com/debt1_florida.html

http://www.bcsalliance.com/debt1_wisconsin.html

The following is a FL statute:

702.06 Deficiency decree; common-law suit to recover deficiency.--In all suits for the foreclosure of mortgages heretofore or hereafter executed the entry of a deficiency decree for any portion of a deficiency, should one exist, shall be within the sound judicial discretion of the court, but the complainant shall also have the right to sue at common law to recover such deficiency, provided no suit at law to recover such deficiency shall be maintained against the original mortgagor in cases where the mortgage is for the purchase price of the property involved and where the original mortgagee becomes the purchaser thereof at foreclosure sale and also is granted a deficiency decree against the original mortgagor.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Does Wisconsin allow deficiency judgments?

Yes, Wisconsin does allow deficiency judgments. If a property is foreclosed and the sale price is less than the amount owed on the mortgage, the lender can seek a deficiency judgment to recover the remaining balance. However, there are specific procedures that must be followed, including obtaining a court order. It's advisable to consult with a legal professional for guidance on this process. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Does Florida allow deficiency judgments?

Yes, Florida allows deficiency judgments. After a foreclosure, if the sale price of the property is less than the mortgage balance, the lender can file for a deficiency judgment to recover the difference. This can occur even if the property's market value is higher than the loan amount. It's important to understand the implications of this potential liability. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

In which scenario would a deficiency judgment be allowed?

A deficiency judgment is allowed when a property is foreclosed and sold for less than the outstanding mortgage balance. For example, if a home is sold at foreclosure for $200,000 but the mortgage owed is $300,000, the lender can seek a deficiency judgment for the $100,000 difference. This applies in states like Florida, where the law permits such judgments post-foreclosure. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Can a second mortgage foreclose in Florida?

Yes, a second mortgage can foreclose in Florida. If the borrower defaults on the second mortgage, the lender has the right to initiate foreclosure proceedings. However, the first mortgage typically takes priority, meaning the second mortgage lender may only recover funds after the first mortgage is satisfied. This can complicate the foreclosure process, so it's essential to understand the implications of multiple mortgages. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Which states allow deficiency judgments?

Many states in the U.S. allow deficiency judgments, including Florida, Wisconsin, and California. However, the rules and procedures for obtaining a deficiency judgment vary by state. Some states may have specific limitations or requirements, such as judicial approval or time limits for filing. It's important to consult state laws or a legal professional to understand the specific regulations in your state. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

What states allow deficiency judgments?

Deficiency judgments are allowed in several states, including Florida, Wisconsin, and Texas. However, the ability to obtain a deficiency judgment and the associated processes can differ significantly between states. Some states may impose restrictions or require judicial approval. Always check the specific laws in your state or consult a legal professional for accurate guidance. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*