Mortgage Deficiency Judgments

When a home sells at a foreclosure auction, the foreclosure sale price is sometimes less than what the borrower owes on the loan. A “deficiency” is the difference between what you owe on the loan and the amount received from your property’s sale. In some states, the foreclosing bank can ask a court for a personal judgment—called a “deficiency judgment”—against you for the deficiency amount. Other states have anti-deficiency laws.

Below you can find details about deficiency judgment laws in your state and under what circumstances you might be liable for paying taxes on canceled debt.

State Deficiency Judgment Laws

State Deficiency Judgment Laws

Overview Articles

Overview Articles

  • Anti-Deficiency Laws

    Some states have laws that prohibit deficiency judgments after foreclosures. These anti-deficiency laws protect borrowers from having to pay the bank for its loss following a foreclosure sale.

  • How Are Deficiency Judgments Collected?

    Your lender sues you for a deficiency and wins, but you can't afford to pay. Now what?

FACING FORECLOSURE ?
Talk to a Foreclosure attorney.
We've helped 75 clients find attorneys today.
There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please enter a valid Email
Phone Number is required
Please enter a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Please enter a valid Case Description
Description is required
How It Works
  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you