Selling Home During Foreclosure

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Summary

If a foreclosure lawsuit is filed in Florida, you can sell the house but must disclose the foreclosure to buyers. Sale proceeds must pay off the mortgage. If proceeds are insufficient, the lender may pursue a deficiency judgment. Florida law limits the lender to one year to file for this, and the amount is capped at the outstanding debt minus the propertys fair market value. Consult a legal expert for personalized advice.

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Yes
It seems like you're dealing with a complicated situation. In Florida, if a foreclosure lawsuit has been officially filed:
- You can still sell the house, but must disclose the foreclosure to potential buyers.
- Proceeds from the sale must be used to pay off the mortgage.
It's strongly advised to consult a lawyer to navigate this process.
How about not having enough money to cover
If you can't cover the mortgage debt with the sale proceeds, the remaining debt (deficiency) could be pursued by the lender. However, Florida has certain deficiency judgment laws that could limit this. You should consult a legal expert.
What is deficiency law
Deficiency law refers to the legal provisions that allow a lender to sue a borrower for the difference between the foreclosure sale price and the remaining mortgage balance. In Florida:
- The lender has one year to file a deficiency judgment.
- The amount is limited to the outstanding debt minus the fair market value of the property.