Under Texas law, which of the following is TRUE regarding deficiency judgments after a residential mortgage foreclosure?
Correct Answer
D) The lender may pursue a deficiency judgment if the foreclosure sale price is less than the loan balance, subject to fair market value limitations
Texas allows lenders to pursue deficiency judgments after residential foreclosure, but the deficiency is limited by the fair market value of the property. If the property's fair market value exceeds the loan balance, no deficiency exists regardless of the sale price.
Why This Is the Correct Answer
Texas allows lenders to pursue deficiency judgments after residential foreclosure, but the deficiency is limited by the fair market value of the property. If the property's fair market value exceeds the loan balance, no deficiency exists regardless of the sale price.
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