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After a property foreclosure where would a deficiency suit/judgment have to be filed by the lender or mortgage insurer?

Bradenton, FL |

If there was any deficiency suit by the lender or subrogation by the mortgage insurer (pmi) would it have to be filed and served in the state and county where the property is located ?

Attorney Answers 4


  1. Best answer

    On a side note, I have defended such a lawsuit brought by PMI Company, Inc. and several defenses that I have employed for the client are: lack of standing (no contract between the Plaintiff and the lender was attached to the lawsuit), failure to mitigate (several short sale offers had previously been proposed by the Defendant that were all denied by the lender --- and then the lender ends up selling the home for $50k less!), failure to state a cause of action, and miscalculation of the deficiency amount and claim allegedly paid to the lender. The ledger attached to the complaint indicates all sorts of miscellaneous fees paid by the lender to PMI Company, Inc., much of which have nothing to do with the Defendant and should not be his responsibility. I expect a flood of these types of lawsuits to be filed over the next few years as the five years Statute of Limitations period closes on lenders and/or PMI to file suit for the deficiency.


  2. A deficiency claim could be brought as part of the original foreclosure case. In most foreclosures, the summary judgment order specifically provides That the Court reserves jurisdiction for purposes of consideration of deficiency relief. The claimant could also if it wished file a separate action Which would entail a new filing fee and new service of process, while continuing with the old case would not. In either circumstance, jurisdiction would be in Florida.

    Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.


  3. It would be in the same county also. If you get sued for the deficiency you should hire an attorney to limit your financial exposure. Call my office if you would like to discuss.

    The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of Florida. To set up a free consultation, please call my office at 727-755-3476.


  4. I was about to answer the question, but I see that I was beat to the proverbial punch by my astute colleagues. I agree with both lawyers.