Finance
Under Iowa law, when a home is sold in foreclosure for less than the mortgage balance, the remaining unpaid debt is called a:
ASurplus funds
BDeficiency✓ Correct
CRedemption amount
DBalloon payment
Explanation
A deficiency is the difference between the foreclosure sale price and the outstanding mortgage balance when the sale price is less than the debt owed. Iowa lenders may seek a deficiency judgment after foreclosure.
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