Default and remedies
Deficiency judgment
A judgment for the shortfall when a foreclosure sale raises less than the debt
It makes the borrower personally liable for the remaining balance. Availability is a matter of state law, and several states bar it after a non-judicial foreclosure or on purchase-money loans.
How the exam asks about it
This is what a "subject to" buyer avoids, since they never became personally liable on the note.
Related terms
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