The remedy to recover the unpaid balance after foreclosure is called a?

• A. Judgment for damages
• B. Deficiency judgement
• C. Foreclosure continuation
• D. Remedial sale

Answer: (B)

Deficiency judgments are the remedy lenders use to recover any unpaid balance after a foreclosure. When a property is sold at foreclosure for less than the amount owed, the difference—the deficiency—can be pursued in court. If a deficiency judgment is granted, the borrower becomes legally liable for that shortfall, allowing the lender to collect it like other judgments. Whether this is possible depends on state law and the loan type; some jurisdictions limit or prohibit deficiency actions, especially for primary residences or in non-judicial foreclosures. But when permitted, the deficiency judgment covers the gap between the foreclosure sale proceeds and the outstanding debt, plus any associated costs.