Hi Joseph
Absolutely, you can buy a home at a Florida foreclosure auction for less than the final judgment amount, I’ve done it myself on a 2-bedroom condo in North Miami Beach. Sometimes banks actually lower their opening bid to encourage third parties to buy, just so they can unload the property and avoid further costs or losses.
If you win the property for less than what’s owed, you don’t have to worry about the bank coming after you for the difference. That’s called a “deficiency judgment,” and it only applies to the original borrower, never the auction buyer. Florida law is pretty clear: as the winning bidder, you pay what you bid, and that’s it.
On top of that, banks are usually reluctant to chase the original borrower for a deficiency. Why? Because in court, the borrower can request a court-ordered appraisal of the property’s fair market value at the time of sale. If the court finds that the property was worth more than the bank’s judgment (Which is almost always the case), the amount the bank can recover as a deficiency might be reduced, or even wiped out completely. This can end up costing the bank more in legal fees and time, and they often decide it’s not worth the hassle or the risk of losing even more money.
Should you avoid these deals?
Not at all. As long as you do your homework (check for unpaid taxes, HOA or condo association liens, and any junior liens that might stick with the property), buying below the judgment amount can actually be a smart way to find value. These situations can be rare, but they’re definitely not a red flag.
Hope it helps.
Fernando
🏠 Can you buy a home in Florida for less than the final judgment amount?
Yes, you absolutely can.
At a foreclosure auction in Florida, properties can and often do sell for less than the final judgment amount (which includes the unpaid loan balance, legal fees, interest, and court costs). If no third-party buyer bids, the lender usually takes the property back for the judgment amount. So that judgment is satisifed via the sale.
But if you or another third-party bid and win the auction—even if your bid is lower than the final judgment—the sale is valid and final as long as proper notice and legal process were followed.
💼 Can the bank come after you for the difference?
No, not if you're the buyer at the auction.
You're not the one who defaulted on the loan—the original borrower is. Any deficiency judgment (the difference between what the borrower owed and what the property sold for) would be the bank going after the borrower, not the auction buyer. You have no liability for that debt.
⚠️ Should this be avoided?
Not at all.
Buying below judgment is how many investors get great deals in the foreclosure market. In fact, the final judgment amount is often not an accurate representation of the property’s market value, especially if it’s inflated with interest and legal fees.
👀 Just Be Sure To:
Do a title search before bidding – there may still be liens or HOA dues.
Inspect the judgment and case details – sometimes the bank may be aggressive in their credit bid and drive up the minimum acceptable price.
Understand your exit strategy – buying cheap is only good if you’ve accounted for repairs, title cleanup, and resale or rental value.
