Yes, if the lender held a public foreclosure sale and the amount that the property sold for at that sale is less than the amount owed on the loan then the lender may sue the borrower for a deficiency judgment. The amount that might be obtained from the borrower is either the difference between the fair market value of the property and the amount earned at the foreclosure sale or the difference between the amount owed on the loan and the amount earned at the foreclosure sale, whichever is less. The borrower is also responsible for all costs related to the deficiency judgment lawsuit. The lender has 90 days from the date of the foreclosure sale to file a deficiency judgment lawsuit.
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This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified foreclosure and alternatives lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local foreclosure and alternatives attorney to discuss your specific legal situation.