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Virginia's deficiency judgment rules:

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Question & Answer

Review the question and all answer choices

A

Never allow deficiency judgments

B

Allow deficiency judgments in certain circumstances

Correct Answer
C

Always require deficiency judgments

Virginia does not always require deficiency judgments. They are only pursued when the lender chooses to seek the difference between the foreclosure sale price and the outstanding loan balance, which is not mandated by state law.

D

Only for commercial properties

Deficiency judgment rules in Virginia apply to both residential and commercial properties, not just commercial ones. The option incorrectly limits the scope of these regulations.

Why is this correct?

Virginia allows deficiency judgments in certain circumstances, particularly in judicial foreclosures where the court determines if there's a deficiency between the sale price and the outstanding loan balance. This balanced approach protects lender interests while not imposing automatic judgments on borrowers.

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