If you are facing foreclosure, or have lost your home through foreclosure, you might still owe your mortgage lender money after the sale. This happens if the foreclosure sale price is less than the amount remaining on your mortgage - it's called a "deficiency." Whether your lender can go to court and get a judgment for the deficiency, and then collect it, depends on state law. Below you can find the law on deficiencies in each of the 50 states.
Deficiencies play a role in short sales too. In most states, you are on the hook for a deficiency after a short sale. But there are ways you can avoid or handle a deficiency.
And for foreclosures, short sales, and deeds in lieu of foreclosure, you might owe the IRS some money if the lender forgives the deficiency
Here are articles about deficiency judgment laws in most U.S. states.
Alabama
Arizona
California
Connecticut
Florida
Georgia
Illinois
Indiana
Louisiana
Maryland
Michigan
Minnesota
Missouri
Nevada
New Jersey
New York
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
South Carolina
Tennessee
Texas
Virginia
Washington
West Virginia
Wisconsin
Here are articles about deficiency judgment laws in most U.S. states.
If you lose your home to foreclosure, you might still owe money to your lender.
If you have a recourse loan, a foreclosing bank may still go after your assets if it doesn't recoup all of its money in a foreclosure sale.
Learn how to avoid owing your mortgage lender money after a short sale of your home.
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At Nolo, we prioritize quality and transparency because we know how important reliable legal information is to our readers. Our information is meticulously researched, regularly updated, and written in plain English by our experienced writers and editors. Learn more about our editorial standards.