Finance & Mortgages

    Deficiency Judgment

    A court judgment against a borrower for the loan balance still owed after a foreclosure sale brings less than the debt.

    When a foreclosure sale produces less money than the borrower owes, the shortfall is a deficiency. A deficiency judgment is a court order making the borrower personally liable for that remaining balance.

    Florida allows deficiency judgments, subject to the court's authority to limit the amount based on the property's fair value at the time of sale.

    On the exam

    A foreclosure sale does not always erase the full debt. If the sale falls short, the lender can pursue a deficiency judgment.

    Exam trap

    The property does not automatically satisfy the whole loan. A below-balance sale can leave the borrower owing the difference.

    Tested in

    Residential Mortgages (9% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.