When a foreclosure sale doesn’t cover the full loan balance, the bank may pursue a deficiency judgment for the remaining amount. But will they waive it? The answer depends on several factors including the bank’s policies, the amount of the deficiency, your financial situation, and whether you have other assets. Some banks may waive deficiencies, especially if collecting would be difficult or costly. Watch this video to learn more about what influences a bank’s decision and what options you may have if you’re facing a deficiency judgment.
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Frequently Asked Questions
What is a deficiency judgment in a foreclosure?
A deficiency judgment is the difference between what you owed on your mortgage and what the property sold for at the foreclosure sale. If the sale price doesn't cover the full loan balance, the bank may pursue you for the remaining amount.
Will the bank waive the deficiency after a foreclosure?
It depends on several factors including the bank's policies, the amount of the deficiency, your financial situation, and whether you have other assets. Some banks may waive deficiencies, especially if collecting would be difficult or costly.
What should I do if I'm facing a deficiency judgment?
Consult with an attorney who can review your specific situation. There may be defenses available, negotiation opportunities, or bankruptcy options that could protect you from a deficiency judgment.
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