Question 1

What is joint and several liability for co-borrowers in Florida?

Accepted Answer

When two or more borrowers sign a promissory note and mortgage as co-borrowers, they are typically jointly and severally liable for the debt. This means the lender can pursue any one co-borrower for the entire loan balance, not just their proportionate share. In Florida, if Co-Borrower A and Co-Borrower B take out a $500,000 mortgage, the lender can demand the full $500,000 from either borrower individually. If Co-Borrower A pays the entire amount, they may seek contribution from Co-Borrower B for their share. This applies to: residential mortgages signed by both spouses, investment property partnerships, and business loans with multiple guarantors.

Question 2

Can a Florida co-borrower be released from joint and several liability?

Accepted Answer

Release is possible but requires the lender’s agreement: refinancing by the remaining borrower (the new loan pays off the old one and the released co-borrower is not on the new note), the lender agrees to a modification releasing one co-borrower (rare unless the remaining borrower demonstrates sufficient income and creditworthiness), a loan assumption where a third party takes over the liability (the original co-borrower must be explicitly released), or the debt is paid in full. In Florida divorce proceedings, the dissolution judgment may allocate responsibility for a mortgage to one spouse, but this only affects the obligation between the spouses; the lender is not bound by the divorce decree and can still pursue either co-borrower.

Question 3

How does joint and several liability affect Florida co-borrowers in foreclosure?

Accepted Answer

In a Florida foreclosure, the lender can: name all co-borrowers as defendants (and typically must, to obtain a complete judgment), obtain a judgment against all co-borrowers jointly and severally, pursue a deficiency judgment against any or all co-borrowers for the difference between the judgment amount and the foreclosure sale price, and garnish wages, levy bank accounts, or lien other property of any co-borrower to satisfy the deficiency. Under the 2013 Florida foreclosure reform (Section 702.06), the lender must file a motion for deficiency within one year of the foreclosure sale. Co-borrowers should understand that even if only one of them occupies the property, both remain liable for the full debt.

Joint and Several Liability of Co-Borrowers

Joint and Several Liability of Co-Borrowers in Florida

How It Works

Common Scenarios

Release Options

Foreclosure Impact

Related Terms

Barnes Walker Lending Law

Ready to Get Started?