Florida · ForeclosureFlorida deficiency after foreclosure: the court's discretion, the fair value cap and the one-year limit

In a Florida foreclosure, whether to enter a deficiency decree for any shortfall is within the court's sound discretion. For owner-occupied residential property, the deficiency can't exceed the difference between the judgment amount – or, in a short sale, the outstanding debt – and the property's fair market value on the sale date; a home that had a homestead tax exemption on the latest certified roll before the foreclosure was filed is presumed owner-occupied, though the presumption can be rebutted. The lender may also sue at common law for the deficiency unless the foreclosure court has already granted or denied a deficiency claim (Fla. Stat. §702.06). An action for a deficiency on a note secured by a mortgage on a one- to four-family home must be brought within one year, counted from the day after the clerk issues the certificate of sale or the day after the lender accepts a deed in lieu of foreclosure (Fla. Stat. §95.11(6)(g)).