What is a foreclosure deficiency judgment?

A foreclosure deficiency judgment is a legal action that a lender can take to recover the balance of money owed on a mortgage after a foreclosure. In the state of Virginia, a deficiency judgment may be sought by the lender if the foreclosed home does not sell for enough money to cover the loan balance and any related fees. In other words, if the foreclosure proceeds do not fully pay off the mortgage, the lender can sue the borrower for the remaining balance, known as the "deficiency judgment." If the court rules in the lender’s favor, the borrower will be responsible for paying the difference between the total debt and the sale proceeds. The lender may then seek to collect the amount through garnished wages or bank accounts, and the debt does not typically expire if it is not paid. Foreclosure deficiency judgments can often be avoided by consulting a knowledgeable foreclosure defense attorney in Virginia. An attorney can help a homeowner to negotiate with the lender, secure a loan modification, pursue a short sale, or take other measures to prevent a foreclosure and protect the homeowner’s finances. Taking such steps can help homeowners to avoid a foreclosure deficiency judgment and the debt that comes with it.

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What is a foreclosure deficiency judgment?

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