Finance
In Minnesota, what is a 'deficiency judgment' in the context of mortgage foreclosure?
AA court ruling that a property's title is deficient
BA judgment against the borrower for the difference between the foreclosure sale proceeds and the outstanding loan balance✓ Correct
CA government finding that a property is unfit for habitation
DA lender's assessment that a property requires too much repair to qualify for financing
Explanation
A deficiency judgment is a court order allowing a lender to collect the difference between the mortgage balance and the foreclosure sale proceeds from the borrower personally. Minnesota limits deficiency judgments in power-of-sale foreclosures. However, in judicial foreclosure, the lender may have more ability to pursue deficiency claims.
Related Minnesota Finance Questions
- Under the Truth in Lending Act (TILA), lenders must disclose all of the following EXCEPT:
- Private Mortgage Insurance (PMI) is typically required when a buyer's down payment is less than:
- Private mortgage insurance (PMI) is typically required when the buyer's down payment is:
- A Minnesota homebuyer's credit score is 620. Which loan program would most likely be accessible to them?
- In Minnesota, a reverse mortgage is available to homeowners who are at least:
- In Minnesota, which of the following is TRUE about the Minnesota Homestead Credit Refund (formerly the property tax refund)?
- A buyer's gross monthly income is $7,500. The lender's maximum front-end DTI ratio is 28%. What is the maximum monthly housing payment allowed?
- A 'buydown' in a Minnesota mortgage transaction means:
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →