Finance
A deficiency judgment occurs when:
AThe foreclosure sale price is less than the outstanding mortgage balance, and the lender sues the borrower for the difference✓ Correct
BThe property fails an appraisal
CThe buyer fails the credit check
DThe lender has insufficient collateral documentation
Explanation
A deficiency judgment is a court order requiring the borrower to pay the difference between the foreclosure sale price and the outstanding mortgage balance.
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