Deficiency Judgment

A deficiency judgment is a court order that says you still owe money on your mortgage even after foreclosure. If the sale of your home during the foreclosure process doesn't cover the entire mortgage debt, your lender can get a deficiency judgment against you. This means you're responsible for paying back the difference. In some states, lenders must take specific steps to get a deficiency judgment, while in others they can receive one automatically. You might be able to negotiate with your lender to waive or settle the deficiency judgment as part of the foreclosure process.