Finance

Under Hawaii mortgage law, what is a 'deficiency judgment'?

AA. A court ruling that the property has title defects
BB. A judgment against the borrower for the unpaid balance after a foreclosure sale proceeds are insufficient to pay off the loan✓ Correct
CC. A judgment declaring the mortgage invalid
DD. A lender's refusal to make a loan based on the property's condition

Explanation

If foreclosure sale proceeds don't cover the mortgage balance, the lender may sue for a deficiency judgment against the borrower for the remaining amount owed.

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