Can a lender get a deficiency judgement if they bid the full amount of the judgement at the foreclosure auction?

Locally (in Florida) I have noticed that some lenders are bidding the full amount owed at the courthouse foreclosure auctions.

If they do that, are they entitled to a deficiency judgement? - Is this your question? Add additional information
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Answers (1)

Margery Ellen Golant

Margery Ellen Golant

Contributor Level 8
It is standard procedure for the lender to bid the full amount of the judgment. This way, if anyone outbids them, the result is that they are paid in full. However, if no one outbids them, they are not paid anything as they are the only bidder and also the recipient of bid proceeds, therefore no money changes hands.

A lender bidding the full amount of the judgment at the foreclosure sale would NOT in any way preclude a deficiency judgment. If a third party bidder outbids the lender, and therefure purchases the property, THAT would extinguish the possibility of a deficiency judgment in favor of that lender. However, any second mortgage holder could still seek a deficiency judgment.
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