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Answered
What Happens When a Property Sells for Less Than the Final Judgment Amount?

Hello,
I noticed that the For case # 502023CA011968XXXXMB property sold for $263,600.00 while the final judgment amount was $327,048.70. Could you please update me on the status of the remaining balance? Specifically, I would like to know whether the deficiency has been waived or if any further action will be taken.
Thank you in advance!

Posted 23 hours ago
  
  
Votes Newest

Answers 2


Thank you, Damon! where to find docket for new filing?

Posted 11 hours ago
  
  

The bidder/winner is not responsible for any of it, they get the certificate of title and they are done.

When a property sells at foreclosure for less than the final judgment amount, the lien holder has the option to pursue a deficiency judgment, but it is not automatic. After the sale is confirmed, the lender decides whether to waive the deficiency or file a separate action to collect it.

If you look at the lien amount on this property, I believe it was $243k, so although the FJ was higher, the lender got their principal and some legal fees back, so that I am guessing is all they wanted. That or the plaintiff didn't setup auto bidding up to FJ amount, they just set to lien amount.

If they choose to pursue a deficiency, it would appear as a new court filing rather than part of the foreclosure case.

You can continue to monitor the docket for any new filings, but won't be anything showing that a deficiency has been pursued for a while.

Posted 17 hours ago
  
  
Damon Simon
174 × 5 Administrator

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