A deficiency judgment is typically in an amount equal to the difference between the funds received from a court sale of property and the balance remaining on a debt. Deficiency judgments are commonly issued when a property owner fails to pay amounts owed on a mortgage and the property securing the mortgage is sold to satisfy the debt, but the proceeds from the sale are less than the amount owed.
Deficiency judgments are not allowed in all states. In order to get a deficiency judgment in most states, the party owed money must file a suit for judicial foreclosure instead of just foreclosing on real property. However, some states allow a lawsuit for a deficiency after foreclosure on the mortgage or deed of trust. Local laws should be consulted for specific requirements in your area.
The Kentucky Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust is a legal document filed in Kentucky by a lender seeking to recover the remaining balance owed by a borrower after a property has been sold through a foreclosure sale. This process typically occurs when the sale of the property does not fully satisfy the outstanding mortgage debt. There are different types of Kentucky Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust, depending on the specific circumstances and the parties involved. Some common types may include: 1. Residential Property Deficiency Complaint: This type of complaint is filed when the property subject to foreclosure is a residential property, such as a single-family home or condominium. The lender seeks to recover the deficiency amount, which is the difference between the outstanding mortgage balance and the proceeds from the foreclosure sale. 2. Commercial Property Deficiency Petition: If the property in question is a commercial property, such as an office building or retail space, the lender may file a deficiency petition to pursue the remaining balance owed. Commercial property foreclosures often involve larger loan amounts, making the recovery of deficiency even more crucial for the lender. 3. Judicial Foreclosure Deficiency Complaint: In the case of a judicial foreclosure, where the lender initiates a lawsuit to obtain a court order for foreclosure, the subsequent deficiency complaint is filed to seek the remaining balance after the property is sold. This complaint highlights the borrower's default and the lender's right to recover the deficiency. 4. Non-Judicial Foreclosure Deficiency Petition: If the foreclosure process was carried out through a non-judicial method, such as a power of sale clause in the trust deed or deed of trust, the lender can file a deficiency petition to recover the remaining balance owed by the borrower after the foreclosure sale. The Kentucky Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust serves as a legal tool for lenders to pursue the outstanding debt following a foreclosure sale. It outlines the specifics of the foreclosure process, the borrower's default, and the lender's rightful claim to the deficiency amount. This formal legal document is crucial in seeking a judgment against the borrower and potentially obtaining a lien on the borrower's other assets or income sources to satisfy the remaining debt.The Kentucky Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust is a legal document filed in Kentucky by a lender seeking to recover the remaining balance owed by a borrower after a property has been sold through a foreclosure sale. This process typically occurs when the sale of the property does not fully satisfy the outstanding mortgage debt. There are different types of Kentucky Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust, depending on the specific circumstances and the parties involved. Some common types may include: 1. Residential Property Deficiency Complaint: This type of complaint is filed when the property subject to foreclosure is a residential property, such as a single-family home or condominium. The lender seeks to recover the deficiency amount, which is the difference between the outstanding mortgage balance and the proceeds from the foreclosure sale. 2. Commercial Property Deficiency Petition: If the property in question is a commercial property, such as an office building or retail space, the lender may file a deficiency petition to pursue the remaining balance owed. Commercial property foreclosures often involve larger loan amounts, making the recovery of deficiency even more crucial for the lender. 3. Judicial Foreclosure Deficiency Complaint: In the case of a judicial foreclosure, where the lender initiates a lawsuit to obtain a court order for foreclosure, the subsequent deficiency complaint is filed to seek the remaining balance after the property is sold. This complaint highlights the borrower's default and the lender's right to recover the deficiency. 4. Non-Judicial Foreclosure Deficiency Petition: If the foreclosure process was carried out through a non-judicial method, such as a power of sale clause in the trust deed or deed of trust, the lender can file a deficiency petition to recover the remaining balance owed by the borrower after the foreclosure sale. The Kentucky Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust serves as a legal tool for lenders to pursue the outstanding debt following a foreclosure sale. It outlines the specifics of the foreclosure process, the borrower's default, and the lender's rightful claim to the deficiency amount. This formal legal document is crucial in seeking a judgment against the borrower and potentially obtaining a lien on the borrower's other assets or income sources to satisfy the remaining debt.
