Legal Question in Real Estate Law in Florida

Re: Can a short sale lead to a deficiency j/ment?

This would be a matter of contract interpretation. The short-sale agreement would create a new set of rights and a new relationship, and it seems to me that a properly-negotiated, properly-documented short sale would, or should, eliminate the remaining debt on the note. I'd hasten to add that I can envision sneaky lenders who would bait a trap for the unwary. You should read the documents carefully, and if it isn't clear that they are accepting title and whatever cash you're throwing in (if any) in full satisfaction of the note secured by the deed of trust, you should ask the lender to point it out. If it isn't in there somewhere, then you aren't getting what you bargained for.

I would also expect to have my original note returned to me.

Re: Can a short sale lead to a deficiency j/ment?

This is negotiable with the lender and they can also issue a 1099 to the IRS as forgiveness of debt.