CORAL GABLES FEDERAL SAYINGS AND LOAN ASSOCIATION, APPELLANT,
v.
WHITEWATER ENTERPRISES, INC., ET AL., APPELLEES
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Coral Gables Federal Savings and Loan Association appealed the trial court's denial of its motion for a deficiency judgment following mortgage foreclosure. The appellate court reversed, holding that a trial court abuses its discretion when it denies a deficiency judgment motion without stating legal or equitable reasons and without evidentiary support.
A trial court abuses its discretion when it denies a motion for a deficiency judgment without stating legal or equitable reasons supported by facts and established equitable principles. When a secured party proves that the fair market value of the collateral is less than the total debt, the secured party is entitled to a deficiency judgment for the balance due.
[1] A trial court abuses its discretion by denying a motion for a deficiency judgment after foreclosure without stating any legal or equitable reasons for the denial and with…
[2] When a judicial foreclosure sale of collateral is insufficient to cover the outstanding principal indebtedness and related expenses, the secured party is entitled to a de…
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Join FLexlaw to unlock all legal intelligence“when a mortgage secures the outstanding principal indebtedness and all of the related expenses, such as interest, costs, and fees, and when the judicial foreclosure sale of the collateral is insufficient to cover all of these amounts, the secured party is entitled to a deficiency judgment for the balance due”
Establishes the legal entitlement to deficiency judgment when foreclosure sale is insufficient to cover total debt
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Join FLexlaw to unlock all legal intelligenceCoral Gables Federal Savings and Loan Association foreclosed on a mortgage after the mortgagor defaulted. The foreclosure sale was insufficient to cov…
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W. SHARP, Judge.
Coral Gables Federal Savings and Loan Association appeals from the final order of the trial court denying its motion for a deficiency judgment in a mortgage foreclosure case. The mortgagor had defaulted, and Coral Gables supplied a sufficient record to merit entry of a deficiency award. In denying the motion, the trial court stated no legal or equitable reasons, and none are apparent from the record. We reverse.
The issue in this case is whether the trial court may deny a motion for a deficiency judgment after foreclosure without expressing any legal or equitable reasons for the denial and without any evidence in the record to support the denial. We addressed this issue in First Union National Bank of Florida v. Schmitt, 584 So. 2d 225, 226 (Fla. 5th DCA 1991). In First Union, this court reviewed a final order in which the trial court denied First Union’s motion for entry of a deficiency judgment after the foreclosure sale and failed to state any equitable reasons to support the denial. Upon reviewing the record and finding no evidence to support the denial or to support the equitable grounds argued on appeal, the First Union court reversed the order and remanded with instructions to the trial court to enter a deficiency judgment.
Similarly, in Federal Deposit Insurance Corp. v. Circle Bar Ranch, Inc., 450 So. 2d 921, 922 (Fla. 5th DCA 1984), this court held that when a mortgage secures the outstanding principal indebtedness and all of the related expenses, such as interest, costs, and fees, and when the judicial foreclosure sale of the collateral is insufficient to cover all of these amounts, the secured party is entitled to a deficiency judgment for the balance due. In Carlson v. Becker, 45 So. 2d 116, 116 (Fla.1950), the Florida Supreme Court held that while the trial court has discretion in determining a deficiency judgment, the facts of the case and established equitable principles must support the trial court’s decision, which is subject to appellate review.1 Additionally, the secured party has the burden to prove that the fair market value of the collateral was less than the total debt. Norwest Bank Owatonna, N.A. v. Millard, 522 So. 2d 546, 547 (Fla. 4th DCA 1988).
In this case, it was clearly an abuse of discretion not to grant the motion for a deficiency judgment. We reverse the trial court’s order denying the deficiency judgment and remand for entry of such an award, based on the difference between the fair market value of the mortgaged properties and the total amount owed Coral Gables pursuant to the foreclosed note and mortgage.
REVERSED and REMANDED.
PETERSON and GRIFFIN, JJ., concur. . See abo Mizner Bank v. Adib, 588 So. 2d 325, 326 (Fla. 4th DCA 1991).
Cases With Similar Vibessemantic neighbors from the corpus
Citator
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Dane D. Morgan v. Kelly, 642 So. 2d 1117 (Fla. 3d DCA 1994)…er Bank v. Adib, 588 So. 2d 825 (Fla. 4th DCA 1991). A trial court’s discretion with regard to deficiency judgments is not absolute. Carlson v. Becker, 45 So. 2d 116 (Fla.1950); Coral Gables Federal Savs. and Loan Ass’n v. Whitewater Enters., Inc., 614 So. 2d 682 (Fla. 5th DCA 1993). “[W]hen a deficiency decree is entered for less than the amount due and owing, the judgment must be supported by established equitable principles.” Trustees of Central States Southeast and Southwest Areas, Pension Fund v. Indico…
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First Union Nat'l Bank OF Fla. v. Goodwin Beach P'ship, 644 So. 2d 1361 (Fla. 5th DCA 1994)…tgage Co., Inc. v. Weit, 613 So. 2d 104 (Fla. 3d DCA 1993); Fara Manufacturing Co. v. First Federal Savings & Loan Ass’n. of Miami, 366 So. 2d 164 (Fla. 3d DCA 1979). . See Coral Gables Federal Savings & Loan Ass’n. v. Whitewater Enterprises, Inc., 614 So. 2d 682 (Fla. 5th DCA 1993); Liberty Business Credit Corporation v. Schaffer/Dunadry, 589 So. 2d 451 (Fla. 2d DCA 1991); Thunderbird, Ltd. v. Great American Insurance Co., 566 So. 2d 1296 (Fla. 1st DCA 1990); Norwest Bank Owatonna, N.A., v. Millard, 522 So.…
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Empire Developers Grp., LLC v. Liberty Bank, 87 So. 3d 51 (Fla. 2d DCA 2012)…den of proving that the fair market value of the property foreclosed upon was less than the total mortgage debt owed.” Estepa v. Jordan, 678 So. 2d 876, 878 (Fla. 5th DCA 1996) (citing Coral Gables Fed. Sav. & Loan Ass’n v. Whitewater Enters., Inc., 614 So. 2d 682 (Fla. 5th DCA 1993)). And “[t]he critical date the fair market value of the real estate must be established for such purpose is the date of the foreclosure sale.” Estepa, 678 So. 2d at 878 (emphasis added) (citing Cmty. Bank of Homestead v. Valois,…
Previewing 3 of 7 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Carlson v. Becker, 45 So.2d 116 (Fla. 1950)
- Norwest Bank Owatonna, N.A. v. Millard, 522 So. 2d 546 (Fla. 4th DCA 1988)
- Mizner Bank v. Adib, 588 So. 2d 325 (Fla. 4th DCA 1991)
- State v. Pugh, 450 So. 2d 921 (Fla. 4th DCA 1984)
- Fed. Deposit Ins. Corporation/liquidator of the Bank of Lake Helen v. Circle BAR Ranch, Inc., 450 So. 2d 921 (Fla. 5th DCA 1984)
- L.V.M. v. State, 584 So. 2d 225 (Fla. 1st DCA 1991)