What is a deficiency judgment?

A deficiency judgment is a court order that holds an individual financially responsible for a debt that remains after a foreclosure. In Virginia, a deficiency judgment is typically allowed if a lender forecloses a mortgage or trust deed. If a lender holds a lien or security deed on real property, they can seek a deficiency judgment if the proceeds from the foreclosure sale are not sufficient to cover the debt owed. In other words, a deficiency judgment is an order that holds the borrower financially responsible for any remaining debt that has not been paid off by the proceeds of the foreclosure sale. A deficiency judgment may be sought regardless of whether or not the borrower was successful in challenging the foreclosure. In Virginia, foreclosure cases are heard by the circuit court, and any deficiency judgment must be approved by the court. Once approved, the judgment stays with the borrower even if they move to another state. Additionally, Virginia law allows lenders to obtain a deficiency judgment for up to 20 years from the date of foreclosure.

Related FAQs

What is a foreclosure defense attorney?
What type of notice is required before a foreclosure sale?
What happens after a foreclosure sale?
What is a deficiency judgment in a foreclosure?
What happens to my credit score after a foreclosure?
Can I get a loan modification during a foreclosure?
What is a foreclosure defense attorney?
What is an auction sale?
What are the foreclosure options for servicemembers?
What happens to the balance of my loan after a foreclosure?

What is a deficiency judgment?

Related FAQs

Related Blog Posts