A deficiency judgment protects a mortgagor from being personally sued in case there is a foreclosure sale deficiency.

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A deficiency judgment is a court order that permits a lender to collect the difference between the sale price of a foreclosed property and the outstanding mortgage balance from the borrower. In other words, it allows the lender to sue the borrower for the unpaid debt. Therefore, a deficiency judgment does not protect the mortgagor from being personally sued.

A Deficiency Judgment Protects a Mortgagor from Being Personally Sued