When two people co-signed a Florida mortgage, they both share full responsibility for that debt. When the mortgage goes into default and foreclosure becomes a real possibility, that shared responsibility can create conflict -- especially when the two co-borrowers have different financial situations, different priorities, or are going through a separation or divorce.
This guide explains what each co-borrower can and cannot do independently, how joint liability works in Florida, and what options exist when co-borrowers cannot agree on a course of action.
Joint and Several Liability: What It Means for Co-Borrowers
Both co-borrowers on a Florida mortgage are jointly and severally liable for the full debt. This is not the same as each being responsible for half. "Joint and several" means the lender can pursue either co-borrower -- or both simultaneously -- for 100% of the outstanding balance.
If one co-borrower files for bankruptcy, the lender can still pursue the other for the full amount. If the court awards a deficiency judgment after the foreclosure sale, both co-borrowers face exposure to the full deficiency amount (subject to Florida's fair-market-value cap under F.S. 702.06).
If a divorce decree assigns the mortgage debt to one spouse, that has no effect on the lender. The lender was not a party to the divorce and is not bound by its terms. See our guide to foreclosure during divorce in Florida for more detail on this scenario.
What Co-Borrowers Can and Cannot Do Independently
| Action | Requires Both Co-Borrowers? |
|---|---|
| File an answer to the foreclosure complaint | No -- each co-borrower can file independently |
| Apply for a loan modification | Generally no -- servicer may accept one borrower's application |
| File for Chapter 13 bankruptcy | No -- each can file individually |
| Sign a short sale listing agreement | Yes -- all owners on the deed must authorize |
| Sign a short sale contract | Yes -- all parties on the deed must sign |
| Execute a deed in lieu of foreclosure | Yes -- all parties on the deed must convey |
| Make a reinstatement payment | No -- either co-borrower can pay |
| Negotiate a forbearance or repayment plan | Generally no -- one borrower can negotiate |
When Co-Borrowers Disagree
If one co-borrower wants to fight the foreclosure through foreclosure defense and the other wants to sell or let the house go, neither can force the other to adopt a particular strategy. However:
- The lender will proceed with the foreclosure lawsuit regardless of internal disagreements between co-borrowers.
- Each co-borrower is a named defendant in the lawsuit and can file their own answer and raise their own defenses -- even if the other co-borrower does not respond.
- A short sale or deed in lieu -- which require all parties on the deed -- cannot proceed without cooperation from both co-borrowers.
- If one co-borrower refuses to cooperate with a short sale, the other may be able to pursue a partition action in Florida circuit court -- a lawsuit to force the sale or division of jointly owned property. However, partition actions are expensive and time-consuming, and may not resolve quickly enough to stop a foreclosure.
Options When One Co-Borrower Has Moved Out
A co-borrower who no longer lives in the property still has full legal liability for the mortgage. Moving out does not release anyone from the debt. If a co-borrower is living elsewhere and does not want to be involved in the property decision, they still face:
- Credit damage from the foreclosure appearing on their credit report
- Potential deficiency judgment liability for their share of the unpaid debt
- Tax implications if a 1099-C is issued for cancelled debt -- see our guide to 1099-A vs. 1099-C after Florida foreclosure
A co-borrower in this situation should independently consult with a foreclosure attorney or bankruptcy attorney to understand their personal exposure and options, even if the other co-borrower is not cooperating.
Loan Modification with Two Co-Borrowers
Loan servicers generally evaluate loan modification applications based on the combined income of all borrowers on the loan. However, if co-borrowers are separated or divorced and one has moved out, some servicers may consider a modification based on the income of the borrower who intends to stay in the property. Requirements vary by investor (Fannie Mae, Freddie Mac, FHA, VA, USDA, portfolio lender) and by servicer policy.
All co-borrowers typically receive a trial period plan and must sign the permanent modification agreement to make it effective. If one co-borrower refuses to sign the modification, it cannot be finalized.
Chapter 13 and Co-Borrowers
Filing Chapter 13 bankruptcy individually stops the foreclosure immediately through the automatic stay -- and that stay protects the property (which is part of the bankruptcy estate) even if the other co-borrower did not file. The filing co-borrower can then propose a repayment plan that cures the mortgage arrearage over 3 to 5 years.
If the non-filing co-borrower also owes unsecured debt and faces other financial pressures, they may want to consider filing separately as well -- or jointly, if they are still married and filing jointly makes sense. A bankruptcy attorney can advise on the best structure for both co-borrowers.
Protecting Your Credit as a Co-Borrower
Once a Florida foreclosure begins, both co-borrowers will see credit damage from the delinquency and the foreclosure filing itself -- regardless of who is living in the property or making payments. See our guide on the credit impact of foreclosure versus the credit impact of a short sale or deed in lieu.
The fastest path to credit recovery is resolving the situation through a short sale or deed in lieu (both require co-borrower cooperation) or through a bankruptcy plan that cures the arrearage. A completed foreclosure on both co-borrowers' records is the outcome that takes the longest to recover from.
Additional Resources
- Equity estimator -- check whether you have equity to support a pre-foreclosure sale
- Foreclosure survival checklist -- track deadlines for both co-borrowers
- Hardship letter template -- required for loss mitigation applications
- Foreclosure vs. short sale comparison -- understand the credit and financial differences
About Barrett Henry
Barrett Henry is a Broker Associate at REMAX Collective with 23+ years of real estate experience helping Florida homeowners facing foreclosure. He regularly works with co-borrowers -- including separating and divorcing couples -- to evaluate their options, coordinate pre-foreclosure sales and short sales, and connect homeowners with attorneys when legal guidance is needed. Barrett serves homeowners throughout all 67 Florida counties.
Facing foreclosure as a co-borrower in Florida? Contact us today for a free consultation -- no cost, no obligation.
