What is a foreclosure deficiency judgment?

A foreclosure deficiency judgment is a court ruling that allows a lender to recoup funds from a borrower after their home has gone through foreclosure. In West Virginia, foreclosure deficiency judgments are governed by the West Virginia Foreclosure Deficiency Judgment Act. At its core, a foreclosure deficiency judgment allows a lender to seek money back from any remaining balance on the loan after the foreclosure has been completed. This happens when the bank is unable to recoup enough of their money through the foreclosure sale to cover their investment. When this occurs, the bank can sue the borrower in court for the difference. If the court rules in favor of the lender and grants a foreclosure deficiency judgment, then the borrower is ordered to pay off the remaining balance. That may include the principal, interest, and other associated costs such as attorney fees and court costs. The court order may even include wage garnishment or seizure of personal property. The goal of a lender in having a foreclosure deficiency judgment is to make sure they recoup their money, even if the borrower defaults on the loan. As such, foreclosure deficiency judgments can have serious financial and legal consequences for the borrower. It is important to consult with a competent lawyer and take appropriate action if you believe you may be liable for a foreclosure deficiency judgment in West Virginia.

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What is a foreclosure deficiency judgment?

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