Finance
In Indiana, a deficiency judgment after a foreclosure sale can be pursued against the borrower for:
AAny amount at the lender's discretion
BThe difference between the outstanding debt and the net foreclosure sale proceeds✓ Correct
CThe full original loan amount
DNo amount — Indiana is a non-deficiency state
Explanation
After a judicial foreclosure sale in Indiana, if the sale proceeds are insufficient to satisfy the outstanding debt (plus costs), the lender may seek a deficiency judgment against the borrower for the shortfall.
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Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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