Can a lender pursue a deficiency judgment in a foreclosure?

Yes, a lender can pursue a deficiency judgment in a foreclosure in North Carolina. This is a legal process that allows a lender to seek payment from a borrower after the foreclosure sale of their property. A deficiency judgment is when a lender tries to collect the remaining balance of a loan from a borrower after they have sold their property at a foreclosure sale. The court can order the borrower to pay the remaining debt from the sale, and if the borrower fails to pay, the lender can use the deficiency judgment to garnish wages, or place a lien on the borrower’s other properties. In North Carolina, the court can order a deficiency judgment if the lender requests it and if the foreclosure sale does not cover the entire outstanding loan balance. The court can also allow the lender to recover legal costs associated with the deficiency judgment filing. However, in North Carolina, the deficiency judgment must be filed within six months of the date the foreclosure sale was ordered, and the amount the lender can collect cannot exceed the amount of the loan. The borrower may also be able to make an agreement with the lender to pay off the debt in installments. The lender must also first deduct the costs of the foreclosure sale, such as commissions and taxes, from the total debt before pursuing a deficiency judgment. In North Carolina, if the lender does pursue a deficiency judgment after a foreclosure, it is important to consult with a lawyer about the legal alternatives and rights that may be available to the borrower.

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Can a lender pursue a deficiency judgment in a foreclosure?

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