Final answer:
A deficiency judgment may be taken by the mortgagee in a judicial foreclosure proceeding when the property sale does not cover the outstanding debt. It is a legal action through the court system that allows the lender to recover the remaining loan balance from the borrower.
Step-by-step explanation:
If the proper circumstances exist, a deficiency judgment may be taken by: a. The mortgagee in a judicial foreclosure proceeding.
A deficiency judgment is an order by the court for the defaulting borrower to pay the balance owed on a loan if the sale of the secured collateral does not satisfy the debt. This typically occurs in the context of a foreclosure, where the property securing the loan is sold. The mortgagee, or lender, can seek this judgment through the courts if the property's sale proceeds are insufficient to cover the outstanding debt. It's not typical for trustees or beneficiaries in a trustee's sale to seek a deficiency judgment, as they are often involved in non-judicial foreclosure processes where courts are not engaged to the same extent.
In a judicial foreclosure sale, where the foreclosure process is conducted under the supervision of a court, the mortgagee has the right to seek this judgment. This contrasts with a trustee's sale, which is generally a non-judicial process. Therefore, the correct answer to the question is 'a. The mortgagee in a judicial foreclosure proceeding.