A lender has taken ownership of a property through a foreclosure auction, will the loan amount still be active for the property?

In Florida, a mortgage foreclosure action will not automatically result in a deficiency judgment. In other words, just because you lose property in foreclosure does not mean you will remain personally liable for money owed to the lender. To obtain a deficiency judgment against the borrower after the foreclosure sale, the mortgage lender must file a motion for a deficiency and allege the property’s value and the amount of the deficiency. The homeowner can defend the motion and can contest the lender’s valuation. If the homeowner files a defense the court must hold a separate hearing on the lender’s request for deficiency liability. At a hearing on a motion for deficiency judgment, the mortgage lender has to show the court evidence that the property’s value on the sale date was less than balance owed on the note. Evidence of value requires the lender to produce an expert value witness. However, the homeowner/borrower can base her/his own value upon his/her own appraisal, or, use the local government’s tax assessed value as evidence of value. The borrower can bring to the hearing his own valuation expert. If the court finds that the foreclosed property was worth more than note balance on sale date the court will not give the mortgage lender a deficiency judgment against the borrower.  A 2013 Florida statute gives the mortgage lender one year to file a motion for deficiency. Under the old law a lender could file a new and separate claim for deficiency up to five years after the foreclosure sale date.