Full question:
I am a broker representative who is owed an outstanding $18.5K commission on a real estate loan transaction. I took a promissory note and a lien on some condominiums as protective measurements for payment. Now the liened properties have been foreclosed on. Is there any method left for recovery?
- Category: Real Property
- Subcategory: Foreclosure
- Date:
- State: Louisiana
Answer:
A deficiency judgment may be an option for recovery. This judgment represents the difference between the sale proceeds of foreclosed property and the remaining debt. It is typically issued when a property owner defaults on a mortgage, and the sale does not cover the owed amount. However, deficiency judgments are not permitted in all states.
In most states, to obtain a deficiency judgment, you must file a suit for judicial foreclosure rather than just foreclosing on the property. You may want to explore state-specific forms, such as the Louisiana Petition for Deficiency Judgment (USLF LA-5188), which addresses situations where a property is sold, but a balance remains due to the petitioner.
If the foreclosure sale did not yield any surplus funds, you can still pursue recovery on the promissory note unless it includes an exculpatory clause that limits recovery to the foreclosure proceeds.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.