Robert defaulted on his Alabama mortgage and the lender obtained a foreclosure judgment. The property sold at the foreclosure sale for $180,000, but Robert's outstanding loan balance was $210,000. The lender wants to recover the remaining $30,000 from Robert. Under Alabama law, what legal remedy is available to the lender to pursue this shortfall?
Correct Answer
B) The lender may seek a deficiency judgment against Robert through the court for the $30,000 shortfall
In Alabama, when a foreclosure sale does not generate sufficient proceeds to satisfy the full mortgage debt, the lender may seek a deficiency judgment against the borrower for the remaining balance. Because Alabama uses judicial foreclosure, the lender is already in court and can request the deficiency judgment as part of the foreclosure action or in a subsequent proceeding. The $30,000 shortfall ($210,000 loan − $180,000 sale price) can be pursued through this legal remedy.
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