<!DOCTYPE html>
<html class="client-nojs vector-feature-night-mode-disabled vector-feature-language-in-header-enabled vector-feature-language-in-main-page-header-disabled vector-feature-page-tools-pinned-disabled vector-feature-toc-pinned-clientpref-1 vector-feature-main-menu-pinned-disabled vector-feature-limited-width-clientpref-1 vector-feature-limited-width-content-enabled vector-feature-custom-font-size-clientpref-1 vector-feature-appearance-pinned-clientpref-1 vector-sticky-header-enabled" lang="en" dir="ltr"><head>
<meta charset="UTF-8">
<title>Deficiency judgment</title>
<meta name="viewport" content="width=device-width, initial-scale=1.0">
<link rel="canonical" href="https://en.wikipedia.org/wiki/Deficiency_judgment"> <link href="./mw/ext.cite.styles.css" rel="stylesheet" type="text/css">
<link href="./mw/skins.vector.icons.css" rel="stylesheet" type="text/css">
<link href="./mw/skins.vector.search.codex.styles.css" rel="stylesheet" type="text/css">
<link href="./mw/skins.vector.styles.css" rel="stylesheet" type="text/css">
<link href="./mw/user.styles.css" rel="stylesheet" type="text/css">
<meta name="ResourceLoaderDynamicStyles" content="">
<link rel="stylesheet" type="text/css" href="./mw/site.styles.css">
<link rel="stylesheet" type="text/css" href="./mw/noscript.css">
<link rel="stylesheet" type="text/css" href="./footer.css">
<link rel="stylesheet" type="text/css" href="./vector-2022.css">
</head>
<body class="skin--responsive skin-vector skin-vector-search-vue mediawiki ltr sitedir-ltr mw-hide-empty-elt ns-0 ns-subject page-Deficiency_judgment rootpage-Deficiency_judgment skin-vector-2022 action-view">
<div class="mw-page-container">
<div class="mw-page-container-inner">
<div class="mw-content-container">
<main id="content" class="mw-body">
<header class="mw-body-header vector-page-titlebar">
<h1 id="firstHeading" class="firstHeading mw-first-heading">
<span id="openzim-page-title" class="mw-page-title-main"><span class="mw-page-title-main">Deficiency judgment</span></span>
</h1>
</header>
<a id="top"></a>
<div id="bodyContent" class="vector-body ve-init-mw-desktopArticleTarget-targetContainer" aria-labelledby="firstHeading" data-mw-ve-target-container="">
<div id="mw-content-text" class="mw-body-content mw-content-ltr" lang="en" dir="ltr"><div class="mw-content-ltr mw-parser-output" lang="en" dir="ltr"><p>A <b>deficiency judgment</b> is an unsecured money judgment against a <a href="Borrower" class="mw-redirect" title="Borrower">borrower</a> whose <a href="Mortgage_law" title="Mortgage law">mortgage</a> <a href="Foreclosure" title="Foreclosure">foreclosure</a> sale did not produce sufficient funds to pay the underlying <a href="Promissory_note" title="Promissory note">promissory note</a>, or loan, in full. <sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> The availability of a deficiency judgment depends on whether the lender has a <a href="Recourse_loan" class="mw-redirect" title="Recourse loan">recourse</a> or <a href="Nonrecourse_loan" class="mw-redirect" title="Nonrecourse loan">nonrecourse loan</a>, which is largely a matter of state law. In some jurisdictions, the original loan(s) obtained to purchase property is/are non-recourse, but subsequent refinancing of a first mortgage and/or acquisition of a 2nd (3rd, etc.) are recourse loans.
</p><p>In short, many jurisdictions hold that the loans obtained at the acquisition of a property ("purchase-money") are non-recourse, and most, if not all, subsequent loans are recourse.
</p><p>States that follow the title (trust-deed) theory of mortgages typically allow non-judicial foreclosure procedures, which are fast, but do not allow deficiency judgments. States that follow the lien theory of mortgages require judiciary foreclosure procedures, but allow deficiency judgments against the debtor, although some states have narrowed the time periods to seek a deficiency judgment. <sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup>
</p><p>There is a difference between a deficiency and a deficiency judgment. A "deficiency" is the difference between the amount owed on a loan and the total amount received/collected at the closing of a loan. A deficiency judgment is a court judgment that is a public record of the amount owed and by whom. In many states, items included in calculating the amount of a deficiency judgment include: the loan principal, accrued interest and attorney fees, less the amount the lender bid at the foreclosure sale. <sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup>
</p><p>In 2014 Geoff Walsh, a staff attorney with the U.S. <a href="National_Consumer_Law_Center" title="National Consumer Law Center">National Consumer Law Center</a>, said on <a href="National_Public_Radio" class="mw-redirect" title="National Public Radio">NPR</a> that the United States is "seeing an uptick" in the pursuit of deficiency claims, because technological developments have enabled large debt-buying institutions and mortgage insurers to more easily pursue former borrowers, who often don't know their legal rights.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup>
</p>
<div class="mw-heading mw-heading2"><h2 id="References">References</h2></div>
<div class="mw-references-wrap"><ol class="references">
<li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text">See also Ballentine's Law Dictionary, p. 133.</span>
</li>
<li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">
/* start https://en.wikipedia.org/ */
.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("./mw/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("./mw/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("./mw/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("./mw/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}
/* end https://en.wikipedia.org/ */
</style><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://tampaflforeclosure.com/foreclosure-defense/motion-for-deficiency-representation">"Post Judgment Deficiency Motions in Florida"</a>. 22 November 2023.</cite></span>
</li>
<li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.natlawreview.com/article/supreme-court-missouri-upholds-lenders-rights-to-obtain-full-deficiency-judgment">"Supreme Court of Missouri Upholds Lenders' Rights to Obtain Full Deficiency Judgment"</a>. <i>The National Law Review</i>. Armstrong Teasdale. 2012-04-23<span class="reference-accessdate">. Retrieved <span class="nowrap">2012-06-13</span></span>.</cite></span>
</li>
<li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text"><cite class="citation news cs1"><a rel="nofollow" class="external text" href="https://www.wnyc.org/radio/#/ondemand/406253">"Bound by Debt: The Relentless Grip of the Foreclosure Crisis Continues"</a>. <i>The Takeaway, NPR</i>. 15 October 2014<span class="reference-accessdate">. Retrieved <span class="nowrap">15 October</span> 2014</span>.</cite></span>
</li>
</ol></div>
<div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2></div>
<ul><li><a href="Bankruptcy" title="Bankruptcy">Bankruptcy</a></li>
<li><a href="Foreclosure" title="Foreclosure">Foreclosure</a></li>
<li><a href="Mortgage_law" title="Mortgage law">Mortgage law</a></li>
<li><a href="Real_estate" title="Real estate">Real estate</a></li></ul>
<style data-mw-deduplicate="TemplateStyles:r1271159938">
/* start https://en.wikipedia.org/ */
.mw-parser-output .asbox{position:relative;overflow:hidden}.mw-parser-output .asbox table{background:transparent}.mw-parser-output .asbox p{margin:0}.mw-parser-output .asbox p+p{margin-top:0.25em}.mw-parser-output .asbox-body{font-style:italic}.mw-parser-output .asbox-note{font-size:smaller}.mw-parser-output .asbox .navbar{position:absolute;top:-0.75em;right:1em;display:none}.mw-parser-output :not(p):not(.asbox)+style+.asbox,.mw-parser-output :not(p):not(.asbox)+link+.asbox{margin-top:3em}
/* end https://en.wikipedia.org/ */
</style></div><!--htdig_noindex--><div><div class="zim-footer">
This article is issued from <a class="external text" title="Last edited on 2025-01-09" href="https://en.wikipedia.org/wiki/?title=Deficiency_judgment&oldid=1268397762">Wikipedia</a>. The text is available under <a class="external text" href="https://creativecommons.org/licenses/by-sa/4.0/deed.en">Creative Commons Attribution-Share Alike 4.0</a> unless otherwise noted. Additional terms may apply for the media files.
</div>
</div><!--/htdig_noindex--></div>
</div>
</main>
</div>
</div>
</div>
</body></html>