Deficiency Judgment

AAA

DEFINITION of 'Deficiency Judgment'

A judgment made by a court against a debtor indicating that the sale on a foreclosed piece of property did not cover the outstanding mortgage in full. It is a lien placed on the debtor for further money. A deficiency judgment is not considered by the court unless the lender makes a motion for it to be granted. If the lender does not make the motion, then the court considers the money gained from the foreclosed property to be sufficient.

INVESTOPEDIA EXPLAINS 'Deficiency Judgment'

A debtor who receives a deficiency judgment may seek exemption from the lender or other creditors, file a motion to have the judgment overturned or, if necessary, declare bankruptcy. Before making any decisions pertaining to a deficiancy judgment, defendants would be best advised to contact an attorney.

RELATED TERMS
  1. Robo-Signer

    An employee of a mortgage servicing company that signs foreclosure ...
  2. Power Of Sale

    A clause written into a mortgage authorizing the mortgagee (lender) ...
  3. Decree Of Foreclosure And Sale

    A declaration made by a court indicating that a piece of property ...
  4. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  5. Creditor

    An entity (person or institution) that extends credit by giving ...
  6. Judgment

    A court order to the loser of a lawsuit to pay the winner a specified ...
Related Articles
  1. Bankruptcy Protection For Your Accounts
    Retirement

    Bankruptcy Protection For Your Accounts

  2. A Lifeline For Those Drowning In Debt
    Credit & Loans

    A Lifeline For Those Drowning In Debt

  3. Prevent Bankruptcy With These Tips
    Credit & Loans

    Prevent Bankruptcy With These Tips

  4. Life After Bankruptcy
    Insurance

    Life After Bankruptcy

Hot Definitions
  1. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  2. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  3. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  4. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  5. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
  6. Macroeconomics

    The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena ...
Trading Center