A deficiency judgment requires a borrower to pay the amount of debt remaining after the collateral is sold.

Name: A deficiency judgment requires a borrower to pay the amount of debt remaining after the collateral is sold.
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A deficiency judgment allows a lender to pursue the borrower for the remaining balance of a loan after the collateral (such as a home or car) has been sold and the proceeds have been applied to the debt. The borrower is responsible for paying the difference.

A Deficiency Judgment Requires a Borrower to Pay the Amount