Connecticut deficiency judgments are:
Question & Answer
Review the question and all answer choices
Prohibited
Available in foreclosure by sale but not strict foreclosure
Automatic
Deficiency judgments are not automatic; they require a separate legal action by the lender to obtain a court order for the difference between the sale price and the outstanding debt.
Always available
Deficiency judgments are not always available in Connecticut; they are specifically prohibited in strict foreclosure proceedings, making this option incorrect.
Why is this correct?
Answer B is correct because Connecticut law specifically permits deficiency judgments in foreclosure by sale proceedings where the sale proceeds are insufficient to cover the outstanding mortgage debt, but prohibits them in strict foreclosure proceedings where the lender simply takes title to the property.
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