Property Ownership
What is a 'deficiency judgment' in Illinois foreclosure proceedings and how has Illinois limited them?
AA judgment against the property for unpaid taxes; not related to mortgages
BA court judgment for the difference between the foreclosure sale price and the outstanding mortgage balance; Illinois law limits deficiency judgments in certain circumstances✓ Correct
CA judgment that deficiencies in the foreclosure process make the sale invalid
DA judgment requiring the lender to pay the borrower for forced sale losses
Explanation
A deficiency judgment is a court order requiring the borrower to pay the difference between the foreclosure sale proceeds and the outstanding mortgage balance. In Illinois, deficiency judgments are allowed under the Illinois Mortgage Foreclosure Law, but lenders must seek the deficiency within 3 months of the sheriff's sale confirmation. Illinois courts have discretion in setting the deficiency amount based on the property's fair market value, which can protect borrowers.
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