What is the likelihood of a lender pursuing a deficiency judgment after a short sale in Florida?

A lender can obtain a deficiency judgment after a short sale in Florida for the difference between the sale proceeds and the loan balance. However, if you do not have substantial assets, the lender will probably not pursue the deficiency judgment because they know they won’t be able to collect on it. Most lenders don’t like to sue their former clients because they may want to do business with them at a later date. They already lost money on your short sale so it doesn’t make financial sense for them to spend more money and time trying to track you down after the sale. To make sure that they do not pursue a deficiency judgment against you, be sure to negotiate in writing with your lender that the sale proceeds from the short sale satisfy your loan debt. This way, you don’t have to worry that they will try and sue you later to collect the deficiency judgment.   

Short sales are complicated. If you are selling your home with a short sale, you should hire a Florida real estate foreclosure defense attorney to negotiate the short sale terms with your lender so that they will not pursue a deficiency judgment against you. The attorney is an expert at Florida foreclosure, short sale and deficiency judgment laws, and can advise you the best ways to avoid a deficiency judgment. The attorney can also negotiate a settlement with your lender if they have already obtained a deficiency judgment against you, and represent you in court.