Finance
A Pennsylvania borrower defaults on their mortgage. The lender sues for the full loan balance after a foreclosure sale that brings less than the outstanding debt. This lawsuit is called a:
ADeficiency judgment action✓ Correct
BRedemption proceeding
CInverse condemnation claim
DAcceleration lawsuit
Explanation
A deficiency judgment is a money judgment against the borrower for the difference between the foreclosure sale proceeds and the outstanding mortgage balance. Pennsylvania courts can award deficiency judgments. Some borrowers negotiate deficiency waivers as part of short sale or deed-in-lieu agreements.
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