deficiency judgment

Definition

A court order making borrowers personally liable for the difference between foreclosure sale proceeds and loan balance. The foreclosure wasn't punishment enough—now they want your other assets too.

Example Usage

After the foreclosure sale only netted $200,000 on a $300,000 loan, the bank pursued a deficiency judgment for the remaining $100,000.

Origin

Legal terminology from foreclosure law, common law concept

Fun Fact

Many states passed anti-deficiency laws after the Great Depression to protect homeowners, but investment properties often don't qualify for protection.

Source: Foreclosure legal terminology

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contingent financing clause

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appraisal gap

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kickout clause

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