In Florida, a mortgage foreclosure does not automatically result in a deficiency judgment . ... If the court finds that the foreclosed property was worth more than the note balance on the sale date, the court will not give the mortgage lender a deficiency judgment against the borrower.
What states allow deficiency judgments?
| State Most Common Type of Foreclosure Are deficiency judgments allowed? | California Nonjudicial Not after a nonjudicial foreclosure. | Colorado Nonjudicial Yes. | Connecticut Judicial Yes. | Delaware Judicial Yes. |
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Does Florida allow deficiency judgments?
In most states, including Florida, if a foreclosure sale results in a deficiency, the lender may get a “deficiency judgment ” (a personal judgment) against the borrower for the deficiency amount.
When can a lender obtain a deficiency judgment?
Deficiency Judgments After Judicial Foreclosures in California. Deficiency judgments are generally allowed after judicial foreclosures in California. But the lender can’t get one if the loan was: used to buy a dwelling that consists of one to four units that’s owner-occupied (called a “purchase money” loan)
When can a lender obtain a deficiency judgment against a borrower in Florida?
Florida allows deficiency judgments: If the borrower was personally served with a foreclosure complaint , deficiency judgments may be obtained by the lender. The lender also has the option to file a separate lawsuit for deficiency, unless the court says otherwise.
How long does the bank have to come after you after a foreclosure in Florida?
The new Foreclosure Reform law (HB 87) changes the Florida Statutes so now the Florida statute of limitations period for a mortgage lender to enforce a deficiency judgment that the bank has obtained as part of the foreclosure lawsuit is down from 5 years to 1 year .
Is Florida a non recourse state?
Unfortunately, like most states, Florida is a recourse state . It is fairly easy for a mortgage lender to file a lawsuit against you after foreclosure to obtain a deficiency judgment for the remainder of the loan. This means it’s very simple for a lender to start garnishing your wages or levying your bank accounts.
What is the statute of limitations on a deficiency judgment in Florida?
The statute of limitations for getting a deficiency judgment for residential properties with no more than four dwelling units is one year . The limitations period starts on the day after the clerk of court issues the certificate of title to the person or entity that bought the home at the foreclosure sale.
Which type of loans are exempt from deficiency judgments?
§ 580c states that no deficiency judgment shall lie in any event on any loan, refinance, or other credit transaction which is used to refinance a purchase money loan , or subsequent refinances to a purchase money loan, except to the extent that the lender advances new principal which is not applied to the balance on the ...
Can you get a deficiency judgment on a trust deed?
Deficiency Judgments Aren’t Allowed After Nonjudicial Foreclosures. In California, a foreclosing bank can’t get a deficiency judgment after a nonjudicial foreclosure.
Is Florida a one action state?
Florida law does not require a lender to elect to proceed separately against real and personal property. The lender may proceed in one action against both real and personal property collateral given for its loan .
When can a lender obtain a deficiency judgment against a borrower quizlet?
If the property does not sell for amount owed , creditor may obtain a deficiency judgment for the amount owed by borrower above proceeds of sheriff’s sale. Debtor can bid, but must be 2/3 of appraised value. occurs during time between default and foreclosure sale.
Do you owe money after a foreclosure?
California . You are not liable for the deficiency for purchase-money loans in non-judicial foreclosure . You are not liable for the deficiency in judicial foreclosure for property with four units or less, seller-financed loans, or refinances of purchase-money mortgages executed after January 1, 2013.
How long does the foreclosure process take in Florida?
How Long Does the Typical Foreclosure Process Take in Florida? Florida foreclosures occur through the judicial system and can take about 4-6 months to complete.
What is the redemption period in Florida?
In Florida, the redemption period after the foreclosure sale is a brief 10 days . With the help of an experienced foreclosure attorney, those choosing to pursue a pre-foreclosure redemption can take advantage of this window of opportunity and potentially reclaim the house.
How does the foreclosure process work in Florida?
In Florida, foreclosures are judicial, which means the lender must file a lawsuit in state court . The lender initiates the process by filing a complaint with the court and having it served to the borrower, along with a summons.
