Finance

An Alaska property is sold at foreclosure for less than the outstanding loan balance. The difference the borrower may owe the lender is called:

AEquity
BA deficiency judgment✓ Correct
CA balloon payment
DA prepayment penalty

Explanation

A deficiency judgment allows the lender to pursue the borrower for the remaining balance after a foreclosure sale if the proceeds do not cover the outstanding debt. Alaska law governs when deficiency judgments are permitted.

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