Chapter 19-4 Statute of Limitations

• Jurisdiction: United States

19-4 Statute of Limitations

In 2013, Florida's House Bill 87 amended Florida Statute § 95.11, which governs the statute of limitations to pursue a deficiency judgment. The alteration decreased the statute of limitations for claims of a deficiency related to notes secured by a mortgage against a one-family to four-family residential property unit from five years to one year. The 2013 amendment applies to actions commenced after July 1, 2013. For those actions that began prior to July 1, 2013, the statute of limitations remains no later than five years after the action accrued, but in any event, no later than July 1, 2014. As such, § 95.11(5)(h) requires that, moving forward, all deficiency judgment actions related to notes secured by residential properties are governed by the one-year statute of limitations. The limitations period commences on the day after "the certificate"³³ is issued by the clerk of court or the day after the mortgagee accepts a deed in lieu of foreclosure.³⁴ The one-year statute of limitations for a deficiency judgment does not apply to a judgment sought following a short sale.³⁵ The statute of limitations for seeking a deficiency judgment after a short sale is five years.³⁶

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Notes:

^[33] Florida Statute § 95.11(5(h) does not specify whether it is here referencing "the certificate" of sale, or the certificate of title. In an abundance of caution, wise lawyers will use the earlier date as the start date for the deficiency statute of limitations.

^[34] See Fla. Stat. § 95.11(5)(h) (2018). Dyck-O'Neal, Inc. v. Norton, 267 So. 3d 478, 481 (Fla. 2d DCA 2019).

^[35] Bush v. Whitney Bank, 219 So. 3d 257 (Fla. 5th DCA 2017) (one-year statute of limitations in Florida Statute § 95.11(5)(h) of the Florida Statutes (2015) did not apply to bank's action [to...