Finance
A Colorado borrower has a $400,000 mortgage balance remaining. The home sells for $350,000. The $50,000 deficiency may result in:
AThe lender simply writing off the loss with no further action
BA deficiency judgment against the borrower for the shortfall✓ Correct
CThe borrower's obligation being automatically discharged
DThe title company being required to cover the difference
Explanation
When a foreclosure sale does not cover the full loan balance, the lender may pursue a deficiency judgment against the borrower for the remaining amount. Colorado's anti-deficiency laws provide some protection in certain situations, particularly for purchase money mortgages.
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