Full question:
In the state of Idaho, if a bank makes a non-recourse loan on real property with the property put up as collateral and the property goes into foreclosure, can the bank seek and receive a deficiency judgment?
- Category: Real Property
- Subcategory: Foreclosure
- Date:
- State: California
Answer:
A deficiency judgment is a legal claim against a borrower when a foreclosure sale does not cover the full mortgage amount. Whether a lender can pursue this option depends on the type of loan. A non-recourse loan means the borrower is not personally liable for any shortfall after foreclosure. Therefore, in Idaho, if a bank has made a non-recourse loan, it generally cannot seek a deficiency judgment.
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