An Ohio borrower owes $250,000 on their mortgage. After foreclosure, the property sells at sheriff's sale for $200,000. Under Ohio law, the lender may seek a deficiency judgment for the $50,000 shortfall. The lender can pursue a deficiency judgment by:
Correct Answer
D) Filing a motion with the court within two years of the sale confirmation for a judgment against the borrower personally
Under Ohio law, a lender may seek a deficiency judgment against the borrower for the difference between the debt owed and the foreclosure sale price. The lender must file a motion with the court, and the court determines whether to grant the deficiency judgment. Ohio does not prohibit deficiency judgments.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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