Finance
A Minnesota property is sold at a foreclosure sale for less than the outstanding mortgage balance. The lender may seek the remaining balance from the borrower through a:
ADeficiency judgment✓ Correct
BSecond mortgage on the borrower's next property
CBalloon payment demand
DAcceleration clause enforcement
Explanation
When a foreclosed Minnesota property sells for less than the mortgage balance, the lender may pursue a deficiency judgment against the borrower for the difference. Minnesota has specific rules about when deficiency judgments are available after foreclosure. Borrowers should understand this risk when facing foreclosure.
Related Minnesota Finance Questions
- A Minnesota real estate investor uses leverage to purchase investment properties. Using leverage means:
- A Minnesota couple is purchasing a $380,000 home. They have $50,000 for a down payment. What LTV will they have, and will they need PMI on a conventional loan?
- A Minnesota homebuyer applies for a mortgage and the lender requires a two-year employment history. The buyer changed jobs 8 months ago for a 30% salary increase in the same field. How will the lender likely treat this?
- A Minnesota buyer is purchasing a multi-unit investment property with a commercial mortgage. Commercial lenders typically use which metric to evaluate the investment property's income potential?
- A Minnesota lender's written policy is to charge a higher interest rate for loans on properties in areas with high crime statistics. Under ECOA and the Fair Housing Act, this policy:
- A Minnesota lender's appraisal comes in $10,000 below the purchase price. The buyer has several options. Which option allows the buyer to proceed with the original price?
- What is the Minnesota homestead classification, and how does it benefit property owners?
- Private Mortgage Insurance (PMI) is typically required when a buyer's down payment is less than:
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →