Escrow & Title

A Missouri foreclosure that results in a sale price less than the outstanding loan balance may create a:

AWindfall for the lender
BDeficiency judgment against the borrower for the remaining balance✓ Correct
CAutomatic discharge of the remaining debt
DMREC disciplinary action

Explanation

If a foreclosure sale does not cover the full loan balance plus costs, the lender may sue the borrower for the deficiency (the remaining amount owed). Missouri allows deficiency judgments in certain circumstances.

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