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.
A Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust is a legal filing in North Carolina that enables a lender to seek the recovery of a deficiency judgment after a property sale under a trust deed or deed of trust. This process is typically initiated when the proceeds from the sale of the property fall short of fully satisfying the borrower's outstanding debt. Here are some relevant details regarding this topic, along with different types of complaints or petitions that can be filed in North Carolina: 1. What is a Trust Deed or Deed of Trust? A trust deed or deed of trust is a legal document that allows a lender to hold a property's title as security for a loan. It involves three parties: the borrower (also known as the trust or), the lender (also referred to as the beneficiary), and a third-party trustee. The trustee holds the title until the borrower repays the loan amount in full. 2. The Deficiency Judgment Concept: A deficiency judgment is a legal ruling that allows a lender to obtain a judgment against a borrower for the remaining debt balance, along with any costs and fees incurred due to the property's sale. This occurs when the property's sale proceeds are insufficient to cover the borrower's outstanding debt. 3. Filing a Complaint or Petition: To initiate the process of recovering a deficiency judgment, the lender must file a Complaint or Petition in the appropriate North Carolina court. The exact type of filing will depend on the specific circumstances and the type of foreclosure procedure followed, such as: a. Pre-Foreclosure Sale Petition: This type of petition is filed if the lender resorted to a pre-foreclosure sale to dispose of the property securing the loan. It seeks a judgment for the deficiency amount remaining after deducting the property sale proceeds. b. Foreclosure by Power of Sale Complaint: If the lender followed a power of sale foreclosure method, a complaint is filed to request a deficiency judgment following the foreclosure sale, accounting for any remaining debt after applying the sale proceeds. c. Judicial Foreclosure Complaint: In cases where a judicial foreclosure process was undertaken, this complaint is filed to initiate legal proceedings, seeking a deficiency judgment after the property's sale. d. Public Trustee Foreclosure Complaint: When a public trustee foreclosure process is utilized, a complaint is filed to kick-start the recovery of the deficiency after the property's sale. 4. Required Contents of the Complaint or Petition: The North Carolina Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust typically includes the following information: a. Parties Involved: Clearly identify the lender (beneficiary) and the borrower (trust or). b. Loan Details: State the original loan amount, the outstanding balance, and any other relevant loan information. c. Property Details: Specify the address and description of the property that was foreclosed upon. d. Sale Details: Highlight when and how the property was sold, including the sale price and any associated costs. e. Deficiency Calculation: Clearly delineate how the deficiency amount was determined, after deducting the sale proceeds from the outstanding debt. f. Legal Request: Specify the requested deficiency judgment amount and indicate the legal basis for seeking it. g. Supporting Documentation: Attach supporting evidence such as loan documents, foreclosure notices, sale records, and any other relevant paperwork. It is crucial to consult with a qualified attorney or legal professional experienced in North Carolina foreclosure laws to ensure the accuracy and compliance of the Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust.A Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust is a legal filing in North Carolina that enables a lender to seek the recovery of a deficiency judgment after a property sale under a trust deed or deed of trust. This process is typically initiated when the proceeds from the sale of the property fall short of fully satisfying the borrower's outstanding debt. Here are some relevant details regarding this topic, along with different types of complaints or petitions that can be filed in North Carolina: 1. What is a Trust Deed or Deed of Trust? A trust deed or deed of trust is a legal document that allows a lender to hold a property's title as security for a loan. It involves three parties: the borrower (also known as the trust or), the lender (also referred to as the beneficiary), and a third-party trustee. The trustee holds the title until the borrower repays the loan amount in full. 2. The Deficiency Judgment Concept: A deficiency judgment is a legal ruling that allows a lender to obtain a judgment against a borrower for the remaining debt balance, along with any costs and fees incurred due to the property's sale. This occurs when the property's sale proceeds are insufficient to cover the borrower's outstanding debt. 3. Filing a Complaint or Petition: To initiate the process of recovering a deficiency judgment, the lender must file a Complaint or Petition in the appropriate North Carolina court. The exact type of filing will depend on the specific circumstances and the type of foreclosure procedure followed, such as: a. Pre-Foreclosure Sale Petition: This type of petition is filed if the lender resorted to a pre-foreclosure sale to dispose of the property securing the loan. It seeks a judgment for the deficiency amount remaining after deducting the property sale proceeds. b. Foreclosure by Power of Sale Complaint: If the lender followed a power of sale foreclosure method, a complaint is filed to request a deficiency judgment following the foreclosure sale, accounting for any remaining debt after applying the sale proceeds. c. Judicial Foreclosure Complaint: In cases where a judicial foreclosure process was undertaken, this complaint is filed to initiate legal proceedings, seeking a deficiency judgment after the property's sale. d. Public Trustee Foreclosure Complaint: When a public trustee foreclosure process is utilized, a complaint is filed to kick-start the recovery of the deficiency after the property's sale. 4. Required Contents of the Complaint or Petition: The North Carolina Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust typically includes the following information: a. Parties Involved: Clearly identify the lender (beneficiary) and the borrower (trust or). b. Loan Details: State the original loan amount, the outstanding balance, and any other relevant loan information. c. Property Details: Specify the address and description of the property that was foreclosed upon. d. Sale Details: Highlight when and how the property was sold, including the sale price and any associated costs. e. Deficiency Calculation: Clearly delineate how the deficiency amount was determined, after deducting the sale proceeds from the outstanding debt. f. Legal Request: Specify the requested deficiency judgment amount and indicate the legal basis for seeking it. g. Supporting Documentation: Attach supporting evidence such as loan documents, foreclosure notices, sale records, and any other relevant paperwork. It is crucial to consult with a qualified attorney or legal professional experienced in North Carolina foreclosure laws to ensure the accuracy and compliance of the Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust.
