Enter to open, tab to navigate, enter to select
Deficiency
Practical Law Glossary Item w-000-5130 (Approx. 2 pages)
Glossary
Deficiency
An occurrence when the proceeds of the foreclosure sale of the mortgaged property are insufficient to satisfy the total amount of debt. The amount of deficiency is usually calculated as the amount of total indebtedness as determined by the foreclosure judgment less either:
- The sale price of the property.
- The fair market value of the property at the time of the foreclosure sale.
The foreclosing party may seek a deficiency judgment.