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According to the new Florida Fair Foreclosure legislation, the deadline for a bank to sue a defaulting home owner for the amount left on a mortgage after a foreclosure (the deficiency) was changed from 5 years to 1 year, regardless of when the cause of action accrued. (See our earlier post for details.)

Before this new law was passed, Florida banks had 5 years after the foreclosure sale to seek a deficiency judgment. After the new law, lenders must file their deficiency claim within one (1) year of the date of the foreclosure sale.

When does this become effective?  July 1, 2013. For all deficiency actions filed after that date, they must be filed within one year of the foreclosure sale. For older foreclosures, the banks have until July 2014 to seek a deficiency judgment.


Smaller South Florida Banks and Credit Unions Are Aggressively Pursuing Foreclosure Deficiency Judgments

Based upon our experience in South Florida, there are more and more Florida home owners who are concerned about deficiency judgments because of past foreclosures and short sales.  Some of those concerns relate to:

  • Are they going to be sued for a deficiency?
  • What is the procedure for a bank to collect a deficiency?
  • What assets are subject to the bank’s collection efforts?
  • Do they have defenses in a Florida deficiency action?
  • Is the time deadline (“statute of limitations”) a defense available to them against the bank?

These issues are particularly important for those who have home loans with smaller financial institutions in the area, such as:

Local foreclosure defense law firms like ours have seen smaller banks and credit unions become much more vigilant than some of their big bank competitors in going after deficiency judgments against current and former Broward, Miami Dade County, and Palm Beach County homeowners.  The main reason for this, we believe, is because these institutions didn’t receive a government bailout.

Unfortunately, we are starting to see motions for deficiency judgments being filed by bank lawyers for these smaller institutions for foreclosures that occurred several years back.

July 2014 is the deadline that they’re trying to beat.

Larry Tolchinsky’s Tip:

If you have a foreclosure involving any of the following South Florida financial institutions, then you may want to check with a Florida foreclosure defense lawyer to see how the new July 2014 deadline may impact your case:

Credit Unions

  1. American Airlines Federal Credit Union
  2. Baptist Health South Florida Federal Credit Union
  3. BCU
  4. Dade County Federal Credit Union
  5. Electricians Local 349 Credit Union
  6. Financial Federal Credit Union
  7. First Florida Credit Union
  8. Florida Transportation Credit Union
  9. Jetstream Federal Credit Union
  10. Miami Federal Credit Union
  11. Miami Firefighters Federal Credit Union
  12. Miami Postal Service Credit Union
  13. Navy Federal Credit Union
  14. Peoples Alliance Federal Credit Union
  15. Peoples Credit Union
  16. Power Financial Credit Union
  17. Ryder System Federal Credit Union
  18. Shaw-Ross Employees Credit Union
  19. South Florida Educational Federal Credit Union
  20. South Florida Federal Credit Union
  21. Space Coast Credit Union
  22. St. James AME Church Federal Credit Union
  23. Tropical Financial Credit Union
  24. United Police Federal Credit Union
  25. University Credit Union


  1. 1st National Bank of South Florida
  2. 1st United Bank
  3. American Momentum Bank
  4. American National Bank
  5. BB&T Banking
  6. BAC Florida Bank
  7. Bank of America
  8. BankAtlantic, A Federal Savings Bank
  9. BankUnited FSB
  10. Bay Bank & Trust Co.
  11. BB&T Bank
  12. Beach Community Bank
  13. Beneficial Savings Bank
  14. Capital Bank
  15. CBC National Bank
  16. City National Bank of Florida
  17. Coastal Bank and Trust
  18. Coconut Grove Bank
  19. Commerce Bank
  20. Community Bank of Florida
  21. Compass Bank
  22. Delta National Bank
  23. Desjardins Federal Savings Bank
  24. Drummond Community Bank
  25. Eagle National Bank of Miami
  26. Enterprise National Bank
  27. Espirito Santo Bank:
  28. Executive National Bank
  29. Farmers & Merchants Bank:
  30. First America Bank
  31. First Bank Florida:
  32. First Bank of Miami:
  33. First Citizens Bank:
  34. First Federal Bank
  35. First National Bank of South Florida
  36. First National Bank of South Miami
  37. First Southern Bank
  38. First United
  39. Flagler Bank
  40. Great Eastern Bank of Florida
  41. Gulfstream Business Bank
  42. Hancock Bank
  43. Helm Bank
  44. Intercredit Bank, N.A.
  45. International Finance Bank:
  46. J. P. Morgan FSB
  47. Marshall & Isley Bank (M&I Bank)
  48. Mercantil Commerce Bank
  49. Northwest Savings Bank
  50. Ocean Bank
  51. Pacific National Bank
  52. Plus International Bank
  53. Regions Bank
  54. Sabadell United Bank
  55. Security Bank, National Association
  56. Southeastern Bank
  57. Stearns Bank
  58. Stonegate Bank
  59. SunTrust Banks, Inc.
  60. TD Bank
  61. Terrabank, National Association: Miami, Hialeah
  62. The Citizens Bank
  63. TotalBank
  64. Trustmark National Bank
  65. U.S. Century Bank
  66. United Southern Bank
  67. Warrington Bank
  68. Wauchula State Bank
  69. Whitney National Bank


Do you have questions or comments? Then please feel free to Chat with Larry in the comments below, at, or (954) 458-8655. If you have a specific or personal situation, please call or email Larry because he can’t answer specific fact questions in general comments.

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