Finance
A deficiency judgment in an Indiana foreclosure occurs when:
AThe property sells for more than the loan balance
BThe foreclosure sale proceeds are less than the outstanding debt, and the lender sues for the difference✓ Correct
CThe borrower files bankruptcy before the foreclosure sale
DThe property has a second mortgage that is not extinguished
Explanation
If the foreclosure sale price does not cover the full amount owed, the lender may seek a deficiency judgment against the borrower for the remaining balance in Indiana.
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