Real Estate Law
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Florida is a deficiency judgment state, which means the prior claims remain and are not wiped out. You should take this into consideration in your bid price.
When a lender forecloses on a mortgage, the total debt owed by the borrower to the lender frequently exceeds the foreclosure sale price. The difference between the sale price and the total debt is called a “deficiency.” In some states, the lender can seek a personal judgment against the debtor to recover the deficiency. Generally, once the lender gets a deficiency judgment, the lender may collect this amount from the borrower. (Learn about methods that creditors can use to collect judgments.)
Effective July 1, 2013, the period of time in which the lender may seek a deficiency judgment is reduced from five years to one year for residential properties with no more than four dwelling units.
Additionally, the deficiency judgment cannot exceed the difference between the judgment amount and the fair market value as of the date of sale if the property is:
Deficiency judgments for short sales involving owner-occupied residential properties are limited to the difference between the outstanding debt and the fair market value.
No it doesn't get wiped out and the lien would be against the property, not against the prior owners individually. You would remain liable for all uppaid fees to the POA and CC, which is why you should factor that in to the bid price. You can find out from them or from the court filings what the amount owing is.
Please rate 4 or 5 and close out the question. Good luck to you. I wish you all the best.