Escrow & Title
In North Dakota, a 'deficiency judgment' after foreclosure is the lender's right to:
ARefuse to issue a mortgage release
BSue the borrower personally for the amount the foreclosure sale proceeds fall short of the loan balance✓ Correct
CCharge additional interest after foreclosure
DPlace a new lien on other properties
Explanation
A deficiency judgment allows the lender to pursue the borrower personally for the remaining loan balance after a foreclosure sale doesn't fully pay off the debt. North Dakota law governs the availability of deficiency judgments.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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