In South Dakota, a deficiency judgment after foreclosure allows the lender to:
Correct Answer
B) Pursue the borrower for the difference between the sale price and the loan balance
South Dakota allows deficiency judgments. If a foreclosure sale does not cover the full loan balance, the lender may obtain a court judgment against the borrower for the deficiency — the difference between the outstanding debt and the foreclosure sale price.
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Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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