Escrow & Title
In Colorado, a 'deficiency judgment' after a foreclosure is:
AA. Always awarded to the lender
BB. A court judgment against the borrower for the remaining debt after foreclosure sale proceeds are insufficient to pay off the loan✓ Correct
CC. Never allowed in Colorado
DD. Only available for commercial properties
Explanation
After a Colorado foreclosure sale, if the proceeds are less than the outstanding loan balance, the lender may seek a deficiency judgment against the borrower for the shortfall. Colorado law has specific procedures and limitations on deficiency judgments. Some junior lien holders lose their right to a deficiency if they don't take specific protective steps during the foreclosure.
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