Mortgage Deficiency : Time Limits

A mortgage lender has the option to pursue a deficiency judgment following a foreclosure. Many people have asked me how long does the mortgage lender have to decide whether or not to get a deficiency judgment. Otherwise stated, what is the statute of limitations applicable to deficiency judgments. I do not practice civil litigation and have no personal experience litigating mortgage deficiency proceedings. I referred the question to a professional colleague who is involved in real estate and lender litigation. He said that there is a four year statute of limitations on deficiency judgments. If so, a lender has up to four years after a foreclosure judgment to file an action for a deficiency judgment against the borrower. As a practical matter, most lenders decide whether or not to seek a deficiency shortly after the foreclosure is complete. It is possible, but unlikely, a borrower will face a deficiency action years after the foreclosure judgment.

Comments

[Debra]

I just finished reading that a definciency judgment can be placed on someone up to FIVE years AFTER the home is sold, NOT after it is foreclosed on. Which makes sense since the deficiency is based on the difference of the sale and the balance on the mortgage.

[Lynn]

All the Florida lawyers I talk to say mortgage deficiency judgment statute of limitations is 5 years on a "written instrument" It seems to me that the mortgage foreclosure is on the written instrument and the deficiency falls under the 4 year part of the statute, but I can't find any local lawyers to confirm this. Help!! and Thank you!!