A foreclosure sale brings in less than the unpaid debt. In a state that allows it, the lender sues the borrower personally for the remaining balance. What is the lender seeking?
Correct Answer
D) Deficiency judgment
Deficiency judgment is correct because the facts match a personal judgment against the borrower for the unpaid balance remaining after foreclosure sale proceeds are applied to the debt, where allowed by law. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
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