In Delaware, after a judicial foreclosure sale, a deficiency judgment is:
Correct Answer
B) Permitted, but the lender must file a separate court action after the foreclosure sale
Delaware allows deficiency judgments following judicial foreclosure. However, the lender cannot automatically obtain a deficiency judgment at the foreclosure proceeding itself — the lender must file a separate legal action in court to recover the difference between the outstanding loan balance and the foreclosure sale proceeds. Delaware uses a judicial foreclosure process, and deficiency actions are subject to court oversight and applicable statutes of limitations.
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