Finance

In NH, a homeowner who defaults on their mortgage and loses the property through foreclosure may face a deficiency judgment if:

AThe foreclosure sale proceeds are less than the outstanding mortgage balance✓ Correct
BThe homeowner had more than 20% equity at the time of default
CThe mortgage was originated more than 10 years ago
DThe property is in a flood zone

Explanation

A deficiency judgment is a court order requiring the borrower to pay the difference between the foreclosure sale proceeds and the outstanding mortgage balance. In NH, lenders may seek deficiency judgments after foreclosure if the sale price does not cover the debt.

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