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If the proceeds from the foreclosure sale are not enough to pay off the mortgage is the mortgage still cancelled as a debt against the borrower?

Justin Parker

in Student Loans

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1 answer

Kristi Hammond on May 10, 2018

Response . The difference between what is still owed on the mortgage and what the property was sold at the foreclosure sale is called a "deficiency". The ability to lender to collect the amount of deficiency is governed by the law of the state. You need to check the laws of your state for a definitive answer. See the discussion in the link below for more information.

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