Obtaining Deficiency Judgments Against Foreclosed Homeowners Not A Pratical Option for Big Lenders

In Fort Myers, Florida, The News Press reports:

• [T]he big news is that at present very few large institutional lenders are even bothering to seek deficiency judgments in foreclosure suits. The main reason is that lenders figure that if someone cannot pay his or her mortgage, then he or she probably cannot pay a deficiency judgment either, and the lender could waste money on an attorney chasing a deficiency judgment and not collect a dime. Instead, lenders focus on getting title to the real estate in a foreclosure suit so they can resell the property and recoup some of their losses. (Note though, that a few smaller banks and hard money lenders are regularly seeking deficiency judgments).(1)

For more, see Lenders don't seem to be pursuing deficiency judgments.

See also, Most lenders not seeking deficiency judgment (Florida often seen as 'debtor friendly').

(1) The article points out that, at least in Florida, deficiency judgments are only available if "personal service of process" has been made when serving the homeowner with notice of the foreclosure action. If the homeowner has already bolted from the home, can't be found, and thereby causes the lender to rely on "constructive service of process" (ie. taking a legal notice out in the local newspaper) to legally serve the homeowner with notice of the foreclosure, deficiency judgments are not available to foreclosing lenders in those cases.