Can a Lender Sue a Borrower for a Deficiency Judgment if the Lender is Still Owed Money After a Foreclosure Sale in Michigan?

Yes, a lender may sue a borrower for a deficiency judgment in Michigan. However, the borrower has defenses available and may not be required by the court to pay the remainder of the loan amount in certain situations. For example, the borrower and the lender may have entered a separate agreement that provides for a specific monetary amount for which the borrower is liable other than the mortgage amount. The borrower may also claim that the foreclosure sale was for a price under market value as a defense in a deficiency judgment proceeding.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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