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LSDefine

Simple English definitions for legal terms

deficiency judgment

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A quick definition of deficiency judgment:

Deficiency judgment is when a creditor is owed money by a debtor, but the asset used to secure the loan does not cover the full amount owed. This happens when the creditor takes back the asset and sells it, but the sale does not cover the full debt. The creditor can then get a deficiency judgment to cover the rest of the debt. This usually happens in mortgage foreclosures when the home does not cover the cost of the mortgage. To get a deficiency judgment, the creditor must be in a state that allows it and prove that the asset was sold at a fair price.

A more thorough explanation:

Deficiency judgment is a legal term that refers to the money that a creditor can receive when the assets used to secure a loan do not cover the debt owed by a debtor. This happens when a debtor becomes insolvent and is unable to pay back the loan.

For example, if a person takes out a mortgage to buy a house and then becomes unable to make the payments, the bank can repossess the house and sell it to recover the debt. However, if the sale of the house does not cover the full amount of the debt, the bank can seek a deficiency judgment to cover the remaining amount.

In order for a deficiency judgment to be granted, the creditor must be in a state that recognizes deficiency judgments for the type of debt and must prove that the asset was sold at a fair price.

Deficiency judgments most commonly arise in mortgage foreclosures, but they can also occur in other types of loans, such as car loans or personal loans.

deficiency | deficit

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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