The Florida Bar
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July 15, 2013
Clarification

In stories about the new expedited foreclosure bill passed by the Legislature and signed by Gov. Rick Scott, the News incompletely reported how deficiencies would be determined if banks decided to seek repayment from homeowners for the difference between the foreclosure judgment and what the bank received at the foreclosure sale. Rep. Kathleen Passidomo, R-Naples, prime sponsor of the bill, explained that the legislation was intended to adopt the actual practice used by many foreclosure courts around the state. The maximum deficiency would be the difference between the final judgment — which can include the amount owed on the mortgage as well as attorneys’ fees and other costs — and the greater of a) the amount received at the foreclosure sale, or b) the fair market value of the home as of the date of the foreclosure sale as determined by the court. Where there is a short sale, the maximum deficiency would be the difference between the outstanding debt and the fair market value of the property on the date of the short sale.

[Revised: 05-08-2014]