What type of judgement is levied against a borrower in a foreclosure sale when the sale does not cover the full mortgage debt?

A deficiency judgment is a legal ruling that a borrower owes the lender the difference between the amount still owed on a mortgage and the final sale price of the foreclosed property. This occurs in situations where the foreclosure sale does not generate enough funds to cover the full balance of the mortgage debt. In such cases, after the property is sold, if the proceeds are insufficient to satisfy the outstanding loan amount, the lender may seek a deficiency judgment to recover the remaining balance from the borrower.

This type of judgment is significant because it allows lenders to still seek repayment even after a foreclosure. The borrower remains liable for the unpaid amount, which can have lasting financial implications. Understanding the concept of deficiency judgments is crucial for borrowers and real estate professionals alike, as it underscores the potential continued financial responsibility associated with a mortgage loan, even after a property has been foreclosed upon.

Other types of judgments mentioned, such as liens judgments, encumbrance judgments, and property tax judgments, do not specifically address the circumstances surrounding foreclosure and remaining mortgage debt. They pertain to different legal issues related to debts or obligations that may affect property ownership or transfer but do not address the direct situation arising from a foreclosure sale.