EstatePass
Real Estate FinancingHARDFREE

Connecticut deficiency judgments are:

2:18
0 views

Question & Answer

Review the question and all answer choices

A

Prohibited

Option A is incorrect because deficiency judgments are not prohibited in Connecticut. They are available in foreclosure by sale proceedings. Connecticut law allows lenders to pursue deficiency judgments when the foreclosure sale proceeds are insufficient to cover the outstanding mortgage balance. However, deficiency judgments are generally not permitted in strict foreclosure cases, making Option B the correct answer rather than a complete prohibition.

B

Available in foreclosure by sale but not strict foreclosure

Correct Answer
C

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.

D

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.

Ready to Ace Your Real Estate Exam?

Access 2,000+ free video lessons covering all 11 exam topics.