Deficiency Judgment: This is an official form from the North Carolina Administration of the Courts (AOC), which complies with all applicable laws and statutes. USLF amends and updates the forms as is required by North Carolina statutes and law.
A deficiency judgment is a legal term used in Wilmington, North Carolina, and other states to refer to a situation where a borrower owes a remaining debt to a lender after a foreclosure sale of their property. In simpler terms, it is a judgment sought by the lender to recoup the outstanding loan balance when the sale proceeds from the foreclosure auction fall short of the total debt owed. In Wilmington, North Carolina, there are primarily two types of deficiency judgments: 1. Judicial Deficiency Judgment: A judicial deficiency judgment is obtained through a court proceeding initiated by the lender. After the foreclosure sale, if the sale proceeds are insufficient to cover the remaining debt, the lender can file a lawsuit seeking a deficiency judgment against the borrower. The court will consider various factors, such as the fair market value of the property, to determine the amount of the deficiency. 2. Non-judicial Deficiency Judgment: In some cases, North Carolina allows lenders to pursue a non-judicial deficiency judgment. This type of deficiency judgment doesn't require a court proceeding but follows a specific statutory process. The lender must provide the borrower with a notice of intent to pursue a deficiency judgment within 45 days of the foreclosure sale. If the borrower doesn't respond or fails to object within a certain period, the lender can proceed to obtain a deficiency judgment. It's important to note that deficiency judgments in Wilmington, North Carolina, are subject to certain limitations. According to state law, the deficiency cannot exceed the difference between the amount owed on the loan and the fair market value of the property at the time of the foreclosure sale. Additionally, if the property was the borrower's primary residence and meets certain criteria, they may be protected from deficiency judgments under the state's anti-deficiency law. In conclusion, a deficiency judgment in Wilmington, North Carolina is a legal mechanism that allows lenders to recover the remaining debt after a foreclosure sale. The two main types are judicial and non-judicial deficiency judgments. These judgments are subject to specific limitations and can be affected by the borrower's circumstances and the fair market value of the property.A deficiency judgment is a legal term used in Wilmington, North Carolina, and other states to refer to a situation where a borrower owes a remaining debt to a lender after a foreclosure sale of their property. In simpler terms, it is a judgment sought by the lender to recoup the outstanding loan balance when the sale proceeds from the foreclosure auction fall short of the total debt owed. In Wilmington, North Carolina, there are primarily two types of deficiency judgments: 1. Judicial Deficiency Judgment: A judicial deficiency judgment is obtained through a court proceeding initiated by the lender. After the foreclosure sale, if the sale proceeds are insufficient to cover the remaining debt, the lender can file a lawsuit seeking a deficiency judgment against the borrower. The court will consider various factors, such as the fair market value of the property, to determine the amount of the deficiency. 2. Non-judicial Deficiency Judgment: In some cases, North Carolina allows lenders to pursue a non-judicial deficiency judgment. This type of deficiency judgment doesn't require a court proceeding but follows a specific statutory process. The lender must provide the borrower with a notice of intent to pursue a deficiency judgment within 45 days of the foreclosure sale. If the borrower doesn't respond or fails to object within a certain period, the lender can proceed to obtain a deficiency judgment. It's important to note that deficiency judgments in Wilmington, North Carolina, are subject to certain limitations. According to state law, the deficiency cannot exceed the difference between the amount owed on the loan and the fair market value of the property at the time of the foreclosure sale. Additionally, if the property was the borrower's primary residence and meets certain criteria, they may be protected from deficiency judgments under the state's anti-deficiency law. In conclusion, a deficiency judgment in Wilmington, North Carolina is a legal mechanism that allows lenders to recover the remaining debt after a foreclosure sale. The two main types are judicial and non-judicial deficiency judgments. These judgments are subject to specific limitations and can be affected by the borrower's circumstances and the fair market value of the property.
