Deficiency Judgements

Because of current market conditions I’m frequently asked “what is a deficiency judgment?”  When a person wants to borrow money from a lender to buy something like a house, car or boat, the lender may only agree to lend the money if the borrower agrees to let the lender have a secured interest in the asset.  In other words, the asset becomes collateral for the debt.  If the borrower fails to make payments as agreed in the loan documents, the lender has the right to have the asset forcibly sold at auction to repay the debt.

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