His most recent article, "Tools of Ignorance: An Appraisal of Deficiency Judgments
," was published in the Spring 201 5 issue of the Washington and Lee Law Review.
If a lender desires to obtain a deficiency judgment
, then he or she should make a reasonable effort to value the real property and then make a bid that is commensurate with that value.
Florida courts apparently will not be deluged, with a couple notable exceptions, with hundreds of thousands of actions from banks seeking deficiency judgments
from older foreclosure cases.
Arizona's anti-deficiency law won't constrain lenders that foreclose unoccupied homes owned by home builders, despite a law protecting owners of one- to two-unit family dwellings from deficiency judgments
Lopa, the Second Department held that the equitable relief doctrine does not prevent a plaintiff in a foreclosure complaint from also requesting a deficiency judgment
Husband failed to pay, the house went into foreclosure, and a deficiency judgment
was entered against the wife.
The statute did not limit the lender's ability to seek a full deficiency judgment
if it agreed to forego the nonjudicial foreclosure process and use the state's alternative judicial foreclosure procedures instead.
Lenders using the nonjudicial foreclosure process are prohibited from seeking a deficiency judgment
against the borrower (Sec.
Unlike in a non-judicial foreclosure, a lender may obtain a deficiency judgment
in a judicial foreclosure and pursue the owner for the remaining loan balance and costs.
For example, a 1933 Idaho statute specified that "no deficiency judgment
may be entered in any amount greater than the difference between the mortgage indebtedness, plus the cost of foreclosure and sale and the reasonable value of the property" (Central Housing Committee, 1936, p.
However, the lender may seek recourse by suing for a deficiency judgment
The Sixth Circuit affirmed the deficiency judgment
but reversed the decision on the penalty.