Legal Question in Real Estate Law in Florida

Re: loan default

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You are responsible for any deficiency in the note. Although the loan is collateralized by the house, if there is a shortfall from the proceeds of the sale of the house, you are technically responsible to pay the lendor the difference.

In all practicality, the Lendor may not choose to pursue you for a shortfall but they do have the right. There are ways to guarantee against this not happening, however.

I would strongly suggest that you meet with a real estate practitioner to discuss the facts of your case. It is possible that the attorney may arrange for a deed in lieu of foreclosure with the lendor giving you a general release. This would be a much better result for you.

Scott R. Jay, Esq.