Real Estate Law
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Yes, it is possible in certain situations. A deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage secures.
HOWEVER, lenders are prohibited by statute (33-729) from obtaining deficiency judgments in foreclosures where the land size is 2.5 acres or less and where the property was used as either a single one-family or single two-family dwelling.
Deficiency actions must be brought within 90 days of a power of sale foreclosure. Any judgment is limited to the difference of the balanced owed and the fair market value of the property.
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