What is a deficiency judgment in a foreclosure?

A deficiency judgment is the amount of money a homeowner still owes after their property is sold in foreclosure. In the state of Arizona, if a home is foreclosed and the proceeds do not cover the entire amount owed, the lender may sue the homeowner to collect the remaining balance. This is known as a deficiency judgment. The court may enter a judgment against the borrower for the amount due, and the lender may then have the right to enforce the judgment through legal means. For example, the lender might be able to garnish wages or levy the borrower’s bank accounts. In Arizona, the lender generally has up to two years after the sale of the property to bring a deficiency judgment lawsuit, but there are certain exceptions. These types of lawsuits can be complex and involve a lot of paperwork, so it’s important for homeowners to seek legal guidance.

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What is a deficiency judgment in a foreclosure?

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