Not necessarily. Many lenders agree to a deficiency waiver as part of the short sale approval, meaning they agree in writing not to pursue the borrower for the remaining balance. This should always be confirmed in writing before closing.

The gap between what’s owed and what the home actually sells for is called a deficiency, and whether a homeowner remains liable for it afterward is one of the most important, and most overlooked, points in any short sale negotiation.

How Florida law treats deficiency timing differently by exit type

Florida law gives lenders a limited window, generally one year from a foreclosure sale or deed in lieu, to pursue a deficiency judgment on an owner-occupied home of up to four units. That one-year deadline is specific to foreclosure sales and deeds in lieu, where a certificate of title is issued and starts the clock. Short sales don’t involve a certificate of title in the same way, and Florida appellate courts have held that the one-year deadline doesn’t apply to them. The result is that a lender pursuing a deficiency after a short sale may have substantially longer, potentially up to the general five-year statute of limitations on a written contract, unless the approval letter specifically waives that right.

Why the written waiver is the whole point

This is exactly why negotiating a deficiency waiver into the short sale approval matters so much. Without it in writing, a homeowner who closes a short sale believing the matter is fully resolved could, in theory, face a deficiency claim years later, well after they’ve moved on and rebuilt their finances. With a written waiver as part of the approval letter, the lender has formally given up that right, and the matter is genuinely closed.

Not every lender includes a deficiency waiver automatically. It’s something an experienced agent should be negotiating for on every file, and it’s worth a homeowner specifically asking about and reading carefully in their approval letter before signing off on a sale.

Have a question about your own situation? Call or text Michele Lee Scherger at 561-309-2950. As a Certified Short Sale Expert, she can walk you through what applies to your loan, your lender, and your timeline.

Confirm this deficiency-waiver framing with current case law before publishing — this is a real and fairly recent appellate distinction (short sales vs. foreclosure sales/deeds in lieu) and worth a quick second check, ideally from an attorney source, since it carries real legal weight.