What is a deficiency judgment in a foreclosure?

A deficiency judgment in a foreclosure is a court order that a homeowner must pay the difference between the amount they owe on a mortgage and the amount that the lender recovers from the foreclosure sale of the home. This difference is also known as a “deficiency.” In New Hampshire, when a foreclosure has been completed, the court may order the borrower to pay the deficiency. The borrower must then provide the lender with proof of financial ability to pay the deficiency. If the court determines that the borrower is unable to pay it, the court may waive the deficiency judgment. The lender can take legal action to collect any unpaid amount, such as placing a lien on the borrower’s property, garnishing wages, or initiating legal proceedings. A court can also order wage garnishment, which requires the borrower’s employer to deduct a portion of the borrower’s salary to pay the deficiency. It’s important to note that deficiency judgments are not always available in New Hampshire. In some cases, the lender will only be able to file a claim for the outstanding amount if the foreclosure sale was not conducted properly. In other cases, the lender may waive the deficiency judgement to avoid costly court proceedings. If you are facing foreclosure, it is important to speak with a qualified attorney who can review your individual situation and provide legal advice on the best course of action.

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What is a deficiency judgment in a foreclosure?

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