Question

If a property sold at a court foreclosure does not sell for an amount sufficient to satisfy the outstanding mortgage loan debt, the mortgagee may sue for:________.

Answer 1

Answer: deficiency judgement

Explanation: A borrower be sued for deficiency judgement by a court based on the borrower's inability to pay back a loan. A deficiency judgement indicates that the sale of the property in which the borrower intends to repay the loan is not enough to clear the loaned amount. Thus, the property has been sold for less than the amount required to pay the borrower's debt in full. A deficiency judgement is usually used by the mortagee as a means of getting further payment from the borrower.