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 South Dakota Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust is a legal document filed by a lender seeking to collect a deficiency balance from a borrower after a property has been sold through a trust deed or deed of trust foreclosure. In South Dakota, there are different types of Complaints or Petitions to Recover Deficiency after Sale available, depending on the specific circumstances and applicable laws. Some common types include: 1. Standard South Dakota Complaint or Petition to Recover Deficiency after Sale: This is the most common type of complaint where the lender alleges that the sale of the property secured by a trust deed or deed of trust did not fully satisfy the outstanding debt, and seeks an order for the borrower to pay the deficiency amount. 2. South Dakota Complaint or Petition based on Fair Market Value: In certain situations, the lender may seek to recover the deficiency amount based on the difference between the property's fair market value at the time of sale and the outstanding debt. This type of complaint focuses on determining whether the sale price was below fair market value and seeks an order for the borrower to make up the difference. 3. South Dakota Complaint or Petition for Inadequate Notice: If the lender believes that the borrower did not receive proper notice of the foreclosure sale, they may file a complaint asserting that the sale should be set aside. If successful, this type of complaint could potentially result in a new sale or allow the lender to pursue a deficiency judgment. 4. South Dakota Complaint or Petition for Unjust Enrichment: In some cases, the lender may argue that the borrower has been unjustly enriched by the foreclosure sale, either through a surplus from the sale or by avoiding their debt obligations. The lender may seek an order for the borrower to pay any surplus proceeds or to compensate the lender for the unjust enrichment. When drafting a South Dakota Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust, it's crucial to include all relevant details such as the names and addresses of the parties involved, a timeline of the foreclosure process, the outstanding debt amount, the sale price, and any evidence to support the deficiency claim. It is strongly recommended consulting with a qualified attorney to ensure compliance with South Dakota laws and to tailor the complaint to the specific circumstances of the case.
