If a property encumbered by a mortgage is sold at a foreclosure sale for an amount less than the value of the mortgage, the mortgagor is not obligated to pay the mortgagee the remaining balance.

Question

Quizplus · Accepted Answer

In many jurisdictions, if a foreclosure sale does not cover the full mortgage debt, the mortgagor may still be responsible for the remaining balance, known as a deficiency, unless laws or agreements state otherwise.

If a Property Encumbered by a Mortgage Is Sold at a Foreclosure