Finance
In Michigan, a 'deficiency judgment' in foreclosure occurs when:
AThe lender accepts a deed in lieu of foreclosure
BThe foreclosure sale proceeds are insufficient to cover the outstanding loan balance, and the lender sues the borrower for the difference✓ Correct
CThe property has a deficiency in its title
DThe borrower's credit score is deficient
Explanation
After a Michigan foreclosure sale, if the sale price is less than the outstanding loan balance, the lender may seek a deficiency judgment against the borrower for the shortfall, unless the borrower has a non-recourse loan or the lender waives the deficiency.
Related Michigan Finance Questions
- A Michigan adjustable-rate mortgage (ARM) differs from a fixed-rate mortgage because:
- Truth in Lending Act (TILA) disclosures in Michigan require lenders to disclose the:
- In Michigan, a fully indexed rate on an ARM equals:
- A Michigan buyer uses an FHA loan with a 3.5% down payment. If the home purchase price is $200,000, what is the down payment?
- Michigan participates in the USDA Rural Development loan program, which provides 100% financing to:
- Under Michigan's Homestead Property Tax Credit, eligible homeowners can receive:
- An FHA loan differs from a conventional loan in that FHA loans:
- An adjustable-rate mortgage (ARM) typically starts with:
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →