What is a deficiency judgment?

A deficiency judgment is a legal order issued by a court of law in Oklahoma that orders a mortgage borrower to pay the remaining amount of a mortgage loan balance to the lender. This occurs when foreclosure proceedings have been completed and the proceeds from the foreclosure sale of the mortgaged property do not cover the full amount of the loan. The difference between the loan balance and the proceeds from the foreclosure sale is referred to as the deficiency. If no deficiency is agreed upon between lender and borrower, the lender can pursue a deficiency judgment in court. In this case, the court will order the borrower to make up the difference owed to the lender. For example, if the outstanding loan balance is $200,000, but the foreclosure sale brings in only $150,000, then the deficiency judgment would be for $50,000. If the court issues a deficiency judgment against the borrower, it is important for the borrower to comply with the ruling or risk further legal action against them. This action could include wage garnishments, tax refund withholdings, or the seizure of other assets or property. It is also important to note that a deficiency judgment is separate from a foreclosure sale and cannot be discharged in a bankruptcy proceeding.

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