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.
Does Florida allow deficiency Judgements?
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.
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.
How long can a bank come after you after 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.
What makes Florida a non recourse default state?
Florida is a default recourse state. Which means that unless your promissory note, mortgage or other financial instrument specifically indicates that the note is non-recourse, then the lender can get a deficiency judgment and go after your assets to satisfy the judgment. Florida does have some protections, but this is one reason…
Are there any non recourse States in America?
There are several non-recourse states in America where you can walk away from your mortgage and not have the bank come after your other assets. Financial Samurai Slicing Through Money’s Mysteries
What happens if you turn over your house in a non recourse state?
$300,000 of your mortgage is now unsecured ($700K mortgage balance – $400K value of property), which means your house is now an under-secured debt. Because you live in a non-recourse state, if you turn over the collateral (your house), your lender cannot collect on the $500,000 unsecured debt.
What happens if you walk away from a non recourse mortgage?
Because you live in a non-recourse state, if you turn over the collateral (your house), your lender cannot collect on the $500,000 unsecured debt. The lender assumed this risk when they approved your mortgage application, and you can walk away with your $1 million in cash and live happily ever after.
