Finance
Under Massachusetts law, a lender who obtains a judgment against a defaulting borrower after foreclosure for any unpaid loan balance is seeking a:
ADeficiency judgment✓ Correct
BSecond mortgage
CRedemption payment
DLis pendens
Explanation
A deficiency judgment is obtained by a lender when the foreclosure sale proceeds are insufficient to cover the entire loan balance. The lender can sue the borrower for the deficiency (remaining balance).
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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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