What is a deficiency judgments in real estate?

What is a deficiency judgments in real estate?

A “deficiency judgment” is a money judgment for the difference between the foreclosure sale price and the total mortgage debt. The deficiency judgment allows the lender to collect the debt through regular collection methods, like garnishing wages or levying a bank account.

What do Deficiency Judgements do?

A deficiency judgment is a court ruling against a debtor who is in default on a secured loan, when the sale of the property that secured the loan fails to cover the debt in full. It allows the lender to collect additional money from the debtor to make up the difference.

What’s a deficiency judgment quizlet?

A deficiency judgment is a personal judgment against a borrower for the balance of a debt owed when the security for the loan is not sufficient to pay the debt.

Can you get a deficiency judgment on a trust deed?

Deficiency Judgments Aren’t Allowed After Nonjudicial Foreclosures. In California, a foreclosing bank can’t get a deficiency judgment after a nonjudicial foreclosure.

Which states have redemption rights?

States that allow statutory right of redemption (post-sale redemption)

• Alabama.
• Delaware.
• Florida.
• Illinois.
• Iowa.
• Kansas.
• Kentucky.
• Maryland.

What Lien has the highest priority?

A general rule in property law says that whichever lien is recorded first in the land records has higher priority over later-recorded liens. This rule is known as the “first in time, first in right” rule.

When can a lender obtain a deficiency judgment against a borrower quizlet?

If the property does not sell for amount owed, creditor may obtain a deficiency judgment for the amount owed by borrower above proceeds of sheriff’s sale. Debtor can bid, but must be 2/3 of appraised value. occurs during time between default and foreclosure sale.

What happens if I don’t pay a deficiency balance?

If you refuse to pay, the debt will most likely be sold to collections. But either the lender or the collector can choose to file a lawsuit against you, which could result in a wage garnishment, a levy against your bank account or a lien against your other property.

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