What is a foreclosure deficiency judgment?

A foreclosure deficiency judgment is a legal process whereby a homeowner in California who has had their home foreclosed may end up owing their mortgage lender money. This occurs when the sale of the foreclosed home does not cover the remaining amount of the loan. In such a case, the lender can file a claim against the homeowner for the remaining amount owed—this is known as a foreclosure deficiency judgment. The foreclosure process in California can take months to complete. During this time, the mortgage lender will assess the current market value of the property and place a lien on it so that they can recover the balance of their loan if the property is sold. The total amount owed by the homeowner may include any unpaid principal, interest, late fees and other related costs. If the sale of the foreclosed property generates less money than what is owed to the mortgage lender, the lender can then file a lawsuit against the homeowner and seek the remaining amount of the loan. This is known as a foreclosure deficiency judgment. The court will then decide the final amount owed to the lender and the homeowner will be required to pay the remaining balance within a specified time frame. Foreclosure deficiency judgments can have serious financial obligations for homeowners in California. If a foreclosure deficiency judgment is awarded to the mortgage lender, the homeowner may also lose their ability to refinance or buy a new home in the future. It is important for homeowners in California to seek legal advice if their home is at risk of foreclosure.

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What is a foreclosure deficiency judgment?

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