a deficiency judgment

USAGE SUMMARY

The phrase "a deficiency judgment" is correct and usable in written English.
It is typically used in legal and financial contexts to refer to a court order that holds a borrower responsible for the remaining balance on a loan after a foreclosure sale. Example: "After the foreclosure, the bank sought a deficiency judgment to recover the remaining amount owed on the mortgage."

✓ Grammatically correct

News & Media

Wiki

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

7 human-written examples

In some states, like California, if a lender decides to foreclose on a mortgage, he cannot seek a deficiency judgment.

The New York Times

Most lenders have the right to pursue a deficiency judgment against a defaulting owner, and when other assets exist, frequently do so.Veggo Larsen Palmetto, FloridaFeedback loopSIR – Lexington partly attributed John McCain's problems during the election to media bias (November 8th).

The Economist

Money Owed After Foreclosure Q A recent column about the impact of foreclosure ("Staying in a Home During Foreclosure," June 13) reported that the owner could be subject to a "deficiency judgment" for the difference between the balance on the mortgage and the amount the house sold for at the foreclosure sale.

The New York Times

Homeowners would find some relief in a provision that would shorten the amount of time, to one year from five years, in which lenders could seek a deficiency judgment, or the money they say they are owed on an underwater mortgage.

The New York Times

This may complicate things, as it allows your lender to pursue a deficiency judgment, which represents the difference between the sold price of the property and the amount owed to the lender.

Forbes

For instance, if your house is worth $200,000 at the time that a foreclosure occurs and you owe $220,000 to your lending company, a deficiency judgment of payment of $20,000 to your lender can totally knock you out.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

53 human-written examples

Once the collateral — the foreclosed home — is returned to the lender and any deficiency judgment paid, the borrower has met the law and, in many cases, has made a smart financial move.

The New Yorker

One example of credit for business as usual is the provision allowing banks to satisfy $1.7 billion of their obligations for waiving "deficiency judgments," the amount a borrower still owes if a house in foreclosure is sold for less than the remaining mortgage debt.

The New York Times

Worst of all, foreclosures and deficiency judgments will usually have a negative influence on your credit score.

Forbes

"In other states, deficiency judgments can slow foreclosure markets to a crawl.

Forbes

"Realtors are very worried about this because they think it will destroy the housing market if people end up with these huge deficiency judgments and are never able to buy a house again," Ms. Corbett said.

The New York Times

Expert writing Tips

Best practice

When discussing mortgage foreclosures or debt settlements, use "a deficiency judgment" to clearly indicate the legal ruling that allows a lender to recover the remaining balance owed after a property sale.

Common error

Avoid using "a deficiency judgment" when you simply mean a general legal judgment. This phrase specifically refers to a judgment related to unpaid debt after foreclosure.

Linguistic Context

The phrase "a deficiency judgment" functions as a noun phrase, specifically referring to a legal determination. It identifies a specific type of judgment related to mortgage foreclosures, as evidenced by Ludwig's examples.

Expression frequency: Uncommon

Frequent in

News & Media

50%

Wiki

25%

Formal & Business

25%

Less common in

Science

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "a deficiency judgment" refers to a specific legal ruling that allows lenders to recover remaining debt after a foreclosure sale. Ludwig AI confirms that the phrase is grammatically correct and usable in legal and financial contexts. While not extremely common, it is well-understood in these domains. It's important to note that its usage is often related to discussions about foreclosure proceedings and debt recovery, and alternative phrases like "shortfall judgment" or "balance judgment" may be suitable depending on the specific context. The phrase appears most frequently in news and media sources.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

deficiency decree

Replaces "judgment" with "decree", maintaining a formal legal tone but altering the specific legal term.

shortfall judgment

Uses "shortfall" instead of "deficiency", providing a less legalistic and more easily understood term for the unpaid balance.

balance judgment

Substitutes "balance" for "deficiency", focusing on the remaining amount owed after a sale.

unpaid balance decree

Combines the concepts of "unpaid balance" and "decree" to describe the legal ruling on the remaining debt.

debt recovery judgment

Focuses on the purpose of the judgment, which is to recover the remaining debt.

post-foreclosure judgment

Highlights the timing of the judgment, occurring after the foreclosure process.

residual debt judgment

Emphasizes that the judgment concerns the debt that remains after the initial sale.

judgment for the remaining debt

Rephrases the concept to directly state what the judgment pertains to.

deficiency claim

Replaces "judgment" with "claim", which is a more general expression that describes demand on money.

claim for the unpaid balance

Rephrases the concept to directly state what the claim refers to.

FAQs

What is "a deficiency judgment"?

A "deficiency judgment" is a court order that holds a borrower liable for the remaining balance of a loan after a foreclosure sale if the sale proceeds don't cover the full debt. It allows the lender to pursue the borrower's other assets to recover the shortfall.

How does "a deficiency judgment" affect a borrower after foreclosure?

If a lender obtains "a deficiency judgment", the borrower is legally obligated to pay the remaining debt. This can lead to wage garnishment, bank levies, and liens on other properties until the debt is satisfied. Not all states allow lenders to seek "a deficiency judgment".

Are there alternatives to "a deficiency judgment"?

While there aren't exact replacements, depending on the context, you could use terms like "shortfall judgment" or "balance judgment" to describe the legal ruling on the remaining debt.

In which situations is "a deficiency judgment" most relevant?

"A deficiency judgment" is most relevant in discussions about foreclosure proceedings, real estate law, and debt recovery. It's particularly important when a property's sale price doesn't cover the outstanding mortgage balance.