Final answer:
The statement is false; lenders can often pursue a deficiency judgement if a foreclosure sale does not cover the mortgage debt, but the ability to do so varies by state law.
Step-by-step explanation:
The statement that in a foreclosure, the foreclosing lender is always limited to the price that the home brings at the foreclosure sale, and can never recover a deficiency judgement against the borrower if the home is sold for less than the loan amount is false. In many jurisdictions, lenders may seek a deficiency judgement, which is the difference between the amount owed on the loan and the sale price of the home at auction, especially if the foreclosure sale does not cover the outstanding mortgage debt. However, the ability to pursue this remedy varies by state law, with some states allowing deficiency judgments and others prohibiting them or limiting their enforceability.