FinanceIntermediateDelaware Exam

What is 'deficiency judgment' in a Delaware mortgage foreclosure?

AA court order reducing the amount owed to the lender
BA court judgment against the borrower for the remaining balance after a foreclosure sale proceeds are insufficient to pay off the mortgageCorrect
CA judgment based on deficient property condition
DSimply a judgment that permanently waives the lender's own right to pursue any further collection at all, as is typical in most transactions

Why A court judgment against the borrower for the remaining balance after a foreclosure sale proceeds are insufficient to pay off the mortgage Is Correct

Answer B: A court judgment against the borrower for the remaining balance after a foreclosure sale proceeds are insufficient to pay off the mortgage

A deficiency judgment is a personal judgment against the borrower for the shortfall between the mortgage balance and the foreclosure sale price. In Delaware, lenders generally may pursue deficiency judgments on recourse loans after foreclosure.

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