Escrow & Title

In Maine, a 'deficiency judgment' after a foreclosure occurs when:

AThe buyer fails to complete the purchase
BThe foreclosure sale proceeds are insufficient to cover the entire mortgage debt, and the lender seeks the remaining balance from the borrower personally✓ Correct
CThe property was sold below market value
DThe title search is incomplete

Explanation

A deficiency judgment allows a lender to pursue the former homeowner for the remaining balance of the debt if the foreclosure sale proceeds did not cover the full amount owed. Maine law may limit deficiency judgments in certain circumstances.

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