Deficiency Judgment


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Deficiency Judgment

An assessment of personal liability against a mortgagor, a person who pledges title to property to secure a debt, for the unpaid balance of the mortgage debt when the proceeds of a foreclosure sale are insufficient to satisfy the debt.

Legislation enacted during the Depression still restricts the availability of deficiency judgments in several states. In some jurisdictions, deficiency judgments are proscribed in certain situations, while in other states, they are limited to the amount by which the debt exceeds the fair market value of the property. Waiver, the intentional relinquishment of a known right, of the benefits conferred by antideficiency legislation contravenes public policy and is ineffective.

deficiency judgment

n. a judgment for an amount not covered by the value of security put up for a loan or installment payments. In most states the party owed money can only get a deficiency judgment if he/she chooses to file a suit for judicial foreclosure instead of just foreclosing on real property. Some states allow a deficiency action after foreclosure on the mortgage or deed of trust. The right to a deficiency judgment is often written into a lease or installment contract on a vehicle. There is a danger that the sale of a repossessed vehicle will be at a wholesale price or to a friend at a sheriff's sale or auction, leaving the debtor holding the bag for the difference between the sale price and remainder due on the lease or contract. (See: foreclosure, judicial foreclosure)

References in periodicals archive ?
com)-- Local attorneys Jo Ann Koontz and Cynthia Riddell will speak on deficiency judgment collections, bankruptcies and their effect on short sales at a seminar scheduled for Monday, September 19, 2011, from 9 to 10:30 a.
The seminar also provides details on how second lien-holders handle short sales, liabilities both with and without a short sale, what a deficiency judgment is and how it can affect the homeowner, effective pricing strategies for a short sale listing, when a short sale is not in the homeowner's best interest, deciding between a loan modification or a short sale and the new government program that gives the seller up to $3,000 for completing a Short Sale.
Grottke says that the seller has that risk today anyway, but he quickly adds that his company is going to absorb the first $10,000 in costs to defend and pay any deficiency judgment against the seller.
No deficiency judgment may be rendered against the County for
With that said, let's interpret the Utah Trust Deed Act and highlight some practical solutions for lenders to avoid forfeiting their right to recover a deficiency judgment.
In 2012, after the LLC, the Millers, and the Buichs failed to make required payments, Farm Credit filed a complaint to foreclose the mortgages securing the loans and to obtain a deficiency judgment.
Or, in other words, are they truly worth more than a deficiency judgment that a lender might be able to perfect against the borrower.
The deficiency judgment was waived and $3,000 was given to the seller at closing.
The statute of limitations for seeking a deficiency judgment is shortened from five years to one year from the date of the foreclosure sale.
The lender is seeking to take possession of the property and pursue a deficiency judgment against Mitzi Osborne, who is living in a friend's house in the gated Hickory Creek neighborhood, we're told.
Generally, plaintiffs move for a deficiency judgment simultaneously with moving to confirm the sale, but the deficiency judgment motion does not enjoy the same flexibility as the confirmation motion.
After reviewing their situation, the tax adviser suggested that the couple file Chapter 13 bankruptcy to shield them from the $33,000 deficiency judgment.

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