deficiency judgment
Shortfall court order
A deficiency judgment is a court order requiring a borrower to pay the remaining debt after a foreclosure or repossession sale fails to cover the full loan balance.
If a house sells at auction for less than the mortgage owed, the lender may seek a deficiency judgment for the shortfall: The bank got a deficiency judgment against him for $40,000.
- debtorOne who owes
- repossessionCreditor seizing collateral
- creditorOne owed money
- personal liabilityOne's own legal responsibility
- foreclosureLender seizes mortgaged property
court ruling · court order · loan default · mortgage · second mortgage · underwater mortgage · unsecured loan · liability · debt collection · financial hardship · shortfall · promissory note · writ of execution · short sale · surety · deed of trust · garnishment · credit score
- debtdebt, creditor, owe, debtor, lender
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance
- foreclosureforeclosure auction, forced sale, foreclosure prevention, foreclosure notice, foreclosure sale
- debt collectiondebt collection, garnishment, late payments, debt collector, delinquent accounts
- bankruptcybankruptcy, bankruptcy court, Chapter 11, Chapter 7, bankruptcy petition
- forced salesforeclosure sale, sheriff's sale, tax sale, forced sale, seizure
deficiency judgmentfull recovery
Return to prior health
surplus funds · debt forgiveness · loan forgiveness · debt cancellation