Contracts

A Pennsylvania foreclosure sale that results in a 'deficiency' means the foreclosure sale price was:

AHigher than the outstanding mortgage balance
BLower than the outstanding mortgage balance — leaving a balance owed after the sale✓ Correct
CEqual to the assessed value
DInsufficient to cover the commission

Explanation

A deficiency arises when the foreclosure sale proceeds are insufficient to cover the outstanding mortgage balance, accrued interest, and foreclosure costs. The lender may pursue a deficiency judgment against the borrower for the remaining balance in Pennsylvania, subject to court confirmation and statutory limitations.

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