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.
Nebraska Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust In Nebraska, a Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust is a legal action taken by a mortgage lender or beneficiary to seek a judgment for the remaining balance owed on a promissory note secured by a trust deed or deed of trust after the property has been sold at a foreclosure sale. This legal process allows the lender to pursue the borrower for the deficiency amount if the foreclosure sale did not fully satisfy the outstanding debt. 1. Nebraska Complaint to Recover Deficiency after Sale under Trust Deed or Deed of Trust: This type of complaint is filed by the mortgage lender or beneficiary who wishes to recover the remaining balance owed on the mortgage loan after the foreclosure sale. It outlines the details of the original loan agreement, the foreclosure sale proceedings, and provides evidence of the outstanding deficiency amount. 2. Nebraska Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust: Similar to the complaint, a petition can also be used by the lender or beneficiary to pursue a deficiency judgment after a foreclosure sale. It serves as a formal request to the court to allow the lender to collect the remaining balance from the borrower. Key Elements in a Nebraska Complaint or Petition to Recover Deficiency after Sale: 1. Identification of Parties: The complaint or petition must clearly identify the mortgage lender or beneficiary as the plaintiff and the borrower as the defendant. It should include their names, addresses, contact information, and any relevant loan or property details. 2. Loan and Security Agreement Details: The complaint or petition should provide a complete description of the loan agreement, including the principal amount, interest rate, payment terms, and the execution of the trust deed or deed of trust securing the loan. 3. Foreclosure Sale Information: The complaint or petition needs to outline the details of the foreclosure sale, including the date, location, and outcome. It should include any evidence of the fair market value of the property at the time of the sale to establish the deficiency amount. 4. Calculation of Deficiency Amount: The complaint or petition should clearly demonstrate how the deficiency amount is calculated. This typically involves subtracting the foreclosure sale proceeds from the outstanding loan balance, along with any additional costs or fees incurred during the foreclosure process. 5. Legal Basis for the Claim: The complaint or petition should include the legal grounds for the deficiency claim, citing relevant Nebraska statutes and case law to support the lender's right to seek a judgment for the remaining balance. 6. Relief Sought: The complaint or petition should state the specific relief sought by the lender, which usually includes a judgment for the deficiency amount, plus any costs, fees, and interest allowed by law. It's crucial to consult with an experienced attorney familiar with Nebraska foreclosure laws and procedures to ensure the proper filing of a Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust. They can guide you through the process and help you navigate any potential challenges or defenses raised by the borrower.
