Deficiency Judgments After Foreclosure, by State (2026)
Whether a lender can sue for the remaining loan balance after foreclosure in each state, and the limits.
| State | Deficiency judgments |
|---|---|
| Alaska | After a nonjudicial trustee's sale, no deficiency judgment may be entered against the borrower, surety or guarantor on the debt. In a court foreclosure, the judgment determines personal liability, and any deficiency between the judgment and the sale price may be enforced by execution. Alaska Stat. §§ 34.20.100, 09.45.170, 09.45.180 |
| Arizona | Limited. After a trustee's sale of property of 2.5 acres or less that is limited to and used for a single one-family or two-family dwelling, the lender cannot sue for the shortfall (with exceptions for certain builder-owned, never-completed or never-occupied dwellings on loans made after 2014). For other property, a deficiency suit must be filed within 90 days after the trustee's sale, and the deficiency is the debt minus the higher of the sale price or the court-determined fair market value. A similar limit applies to purchase-money mortgages foreclosed in court on qualifying homes. Ariz. Rev. Stat. §§ 33-814, 33-729 |
| Arkansas | Limited after a non-judicial sale. The lender must sue within 12 months after the sale and prove the debt, the sale price and the property's fair market value. The judgment cannot exceed the lesser of the debt (with interest, costs and fees) minus the fair market value, or the debt minus the sale price. Ark. Code Ann. § 18-50-112 |
| California | Largely barred for homeowners. No deficiency may be owed or collected after a trustee's sale under a power of sale. No deficiency may be owed on a seller-financed purchase loan, or on a lender's loan used to buy a dwelling of up to four units that the buyer lives in (a "purchase money loan"), or on a refinance of such a loan except for any new money advanced. These protections do not change a guarantor's liability. Cal. Code Civ. Proc. §§ 580b, 580d |
| Colorado | Possible. The lender's sale bid form includes a line for any deficiency, and the lender must bid at least its good-faith estimate of the property's fair market value (minus senior liens, unpaid taxes and estimated holding and selling costs), unless the debt is lower. A lender's failure to bid that amount does not invalidate the sale, but anyone sued for a deficiency may raise it as a defense. C.R.S. § 38-38-106 |
| Connecticut | Yes. Within 30 days after the redemption period ends, any party may file a motion for a deficiency judgment. At a hearing, the court sets a value for the property and enters judgment for the difference, if any, between that value and the lender's claim. In any later suit on the debt, the lender can recover only that judgment amount. Conn. Gen. Stat. § 49-14 |
| District of Columbia | Yes, in a court foreclosure. If the court orders the property sold and the net proceeds do not cover the mortgage debt, the court may enter a judgment against the borrower or another party liable for the debt for the remaining balance. D.C. Code § 42-816 |
| Florida | Possible, at the court's discretion. For owner-occupied residential property, the deficiency cannot exceed the difference between the judgment amount (or, for a short sale, the outstanding debt) and the property's fair market value on the date of sale; a homestead-exempt property is presumed owner-occupied. The lender may also sue separately at common law unless the foreclosure court already granted or denied a deficiency. For 1- to 4-family residential property, a separate action to collect a deficiency must be brought within 1 year, starting the day after the clerk issues the certificate of sale or the lender accepts a deed in lieu of foreclosure. Fla. Stat. §§ 702.06, 95.11(5)(g) |
| Georgia | Possible, with a court step. After a non-judicial sale that does not cover the debt, the lender cannot pursue a deficiency judgment unless, within 30 days after the sale, it reports the sale to the superior court judge for confirmation and obtains an order confirming it. The court must be satisfied the property sold for its true market value, the borrower must get at least 5 days' notice of the hearing, and the court may order a resale for good cause. O.C.G.A. § 44-14-161 |
| Hawaii | After a nonjudicial foreclosure of residential property, the lender (or anyone other than an association) may not pursue a deficiency judgment against an owner-occupant unless the debt is secured by other collateral. In a judicial foreclosure, the circuit court determines the amount due and renders judgment. Haw. Rev. Stat. §§ 667-38, 667-1.5 |
| Idaho | Limited. After a trustee's sale, the lender may sue for a money judgment for the balance only within 3 months after the sale. The court must find the property's fair market value at the time of sale, and the judgment cannot exceed the amount by which the debt exceeded that fair market value, nor the difference between the sale price and the debt. Idaho Code § 45-1512 |
| Illinois | Yes, unless the Foreclosure Law expressly prohibits it. In the order confirming the sale, the court enters a personal judgment for any deficiency against a party if otherwise authorized and to the extent requested in the complaint and proved, but only against parties who were personally served or who appeared in the case. 735 ILCS 5/15-1511, 5/15-1508(e) |
| Indiana | An owner may, with the judgment holder's written consent, waive the waiting period before the sheriff's sale so the sale can proceed immediately; the consideration for that waiver is the judgment holder's waiver and release of any deficiency judgment against the owner. Ind. Code § 32-29-7-5 |
| Iowa | Possible, with limits. If the sale does not cover the judgment, a general execution may issue against the borrower unless the parties agreed otherwise. For a one- or two-family dwelling that is the borrower's residence (or farm property), the foreclosure judgment becomes void and cannot be enforced after two years from entry. Shortened redemption periods and foreclosure without redemption on a home (when the owner does not demand a delay) come with a waiver of deficiency. Iowa Code §§ 654.6, 615.1, 628.26, 654.20 |
| Kansas | The Kansas statutes reviewed do not set out a separate deficiency-judgment procedure, but they give the court control over the sale price. When the sheriff reports the sale, the court may decline to confirm it if the bid is substantially inadequate, may set a minimum (upset) price the property must bring, or may hold a hearing on the property's value and require, as a condition of confirming the sale, that the property's fair value be credited against the judgment, interest, taxes and costs. A sale for the full amount of the judgment, taxes, interest and costs is considered adequate. K.S.A. 60-2415(b) |
| Kentucky | Yes. In an action to enforce a mortgage or lien, the court may order the property sold and also enter a personal judgment against the borrower for the debt. If a cash sale brings more than is needed to pay the judgment, costs and commission, the extra is paid to the owner whose property was sold. KRS 426.005; KRS 426.500 |
| Louisiana | Possible, with limits. Unless another law provides otherwise, after a sale under executory process the lender can get a judgment for the remaining debt only if the property was appraised before the sale. To get it, the lender must convert the case to an ordinary proceeding or file a separate suit, and the borrower must be cited and given all the ordinary-case delays. If an appraised property draws a bid of less than two-thirds of its appraised value, it is re-advertised and then sold for whatever it brings at the second offering, and the debt is reduced by at least a set credit tied to the appraisal. La. Code Civ. Proc. arts. 2771, 2772, 2723, 2336 |
| Maine | Yes, with limits. Any deficiency is assessed against the borrower and the court issues an execution for it, but the lender's deficiency claim is limited to the amount as of the date of the public sale. If the lender itself buys at the sale, the deficiency is limited to the difference between the property's fair market value at the time of sale (set by an independent appraisal) and the amount due plus sale expenses. The lender must file a report of sale on time or loses the right to seek a deficiency. Any surplus goes to the owner. 14 M.R.S. §§ 6323, 6324 |
| Massachusetts | A lender may sue for a deficiency after a power-of-sale foreclosure, but only if it mailed the borrower a notice of intention to foreclose with a deficiency warning, by registered mail, at least 21 days before the sale, and signed an affidavit of that mailing within 30 days after the sale. The deficiency lawsuit must generally be filed within 2 years after the foreclosure sale. Mass. Gen. Laws ch. 244, §§ 17A, 17B |
| Michigan | A lender may sue for a deficiency after a foreclosure sale. When the lender (or holder of the debt) bought the property at a foreclosure-by-advertisement sale, the borrower may defend by showing that the property was fairly worth the amount of the debt at the time of sale, or that the bid was substantially less than the property's true value; this defense can reduce or defeat the deficiency. This defense does not apply to court-ordered (judicial) foreclosure sales. MCL 600.3280 |
| Minnesota | A deficiency judgment is not allowed when a mortgage is foreclosed by advertisement and the redemption period is 6 months or five weeks. Otherwise, a lender may get a deficiency judgment, limited to the difference between the sale proceeds (after expenses and costs) and the amount owed or the court judgment. For agricultural property, the lender must file a deficiency action within 90 days after the sale, and the deficiency is limited to the difference between the debt and the property's fair market value, determined by a jury unless waived. Minn. Stat. § 582.30 |
| Mississippi | A lawsuit on an installment note, or a series of three or more notes, secured by a mortgage or deed of trust must be brought within one year from the date of the foreclosure or sale of the property securing the note(s). Miss. Code Ann. § 15-1-23 |
| Montana | Not allowed after a trustee's sale: when a trust indenture is foreclosed by advertisement and sale, no deficiency judgment may be entered against the borrower, a guarantor, or anyone else obligated on the debt. A deficiency judgment is also not allowed when a seller-financed purchase-price mortgage is foreclosed. Mont. Code Ann. §§ 71-1-317, 71-1-232 |
| Nebraska | Allowed after a trustee's sale, with limits. The lender must file the deficiency lawsuit within three months after the sale. The court must find the property's fair market value on the date of sale and cannot award more than the debt (with interest, costs and trustee's fees) minus that fair market value, and never more than the debt minus the sale price. Neb. Rev. Stat. § 76-1013 |
| Nevada | Allowed in many cases, with limits. The lender must apply to the court within 6 months after the foreclosure sale, and a hearing is required. The judgment cannot exceed the lesser of (a) the debt minus the property's fair market value at the time of sale, or (b) the debt minus the sale price (with an additional limit when the right to the judgment was bought from the original holder and the property was the debtor's principal residence). A financial institution may not get a deficiency judgment on a single-family home if the owner used the loan to buy the home, lived in it continuously as a principal residence, and never refinanced. Nev. Rev. Stat. §§ 40.455, 40.459 |
| New Jersey | Yes, with limits. The New Jersey Courts state that if the sale proceeds are less than what is owed, the lender can sue the borrower for the remaining amount. The Appellate Division describes New Jersey's deficiency statutes (N.J.S.A. 2A:50-2 to 2A:50-10 and 2A:50-22 to 2A:50-28) as generally requiring the lender to foreclose first on a residential mortgage and guaranteeing the debtor a credit for the property's fair market value (N.J.S.A. 2A:50-3), with some exceptions (N.J.S.A. 2A:50-2.3). New Jersey Courts, Foreclosure Self-Help; N.J.S.A. 2A:50-2 to -10, 2A:50-2.3, 2A:50-3 (as described in Appellate Division opinion A-0896-22) |
| New Mexico | After a trustee's sale under a deed of trust, the lender may file a separate lawsuit for a deficiency judgment within six years after the sale; if it does not, the sale proceeds are treated as full satisfaction of the debt. The deficiency is the amount owed (including prior liens) minus the sale price. No deficiency judgment may be sought under a deed of trust securing a residential loan made to a low-income household (income at or below 80% of area median income), and any such deficiency may not be reported to credit reporting agencies. A deed of trust may also bar recovery of any deficiency. NMSA 1978, § 48-10-17 |
| New York | Yes, but limited. The lender must ask the court for a deficiency judgment together with its motion to confirm the sale, made within 90 days after the sale is completed, against a person liable on the debt who appeared in the case or was personally served. The court determines the fair market value of the home as of the auction date, and the deficiency is the debt minus the higher of that market value or the sale price. RPAPL § 1371 |
| North Carolina | Limited. A lender may not get a deficiency judgment on a seller-financed purchase-money mortgage or deed of trust whose note shows on its face that it is for the balance of the purchase price. When the lender itself buys the home at a power-of-sale foreclosure and then sues for a deficiency, the borrower may defend by showing the home was worth the amount of the debt or that the bid was substantially less than its true value. A person obligated on the debt who was not served with the notice of hearing is not liable for any deficiency. N.C. Gen. Stat. §§ 45-21.38, 45-21.36, 45-21.16(b)(2) |
| North Dakota | Not for most owner-occupied homes. A lender may not obtain a deficiency judgment in a foreclosure of residential property with four or fewer units, on up to 40 contiguous acres, containing a residence the owner occupies as a homestead. For agricultural land over 40 acres, a deficiency is limited to the difference between the debt and the land's fair market value when the action began; in other cases it is limited to the difference between a court-appointed appraiser's value and the amount due. N.D.C.C. § 32-19-03 |
| Ohio | Yes, but limited in time for homes. For a mortgage on property with a dwelling for not more than two families that was used as a home or farm dwelling (or held as a homestead or homesite by the borrower), a judgment for the debt becomes unenforceable as to any remaining deficiency two years after the court confirms the judicial sale, unless collection steps were started within that period or the borrower filed a written waiver. Ohio Rev. Code § 2329.08 |
| Oklahoma | In a power-of-sale foreclosure of a homestead, the homeowner can block a deficiency judgment by sending the lender written notice by certified mail, at least 10 days before the sale, that the property is the homestead and that the homeowner elects against a deficiency judgment; the lender may contest the homestead claim within 90 days after its deed is recorded. For non-homestead property, the borrower is liable for any deficiency (including sale costs and agreed attorney's fees), but the lender must sue within 90 days after the sale, and the deficiency is reduced if the borrower shows the property's fair market value on the sale date exceeded the sale price. 46 O.S. § 43(A)(2)(c), (d) |
| Oregon | Generally no for homes. Except as allowed in ORS 86.797(4), a lender may not sue for a deficiency after a trustee's sale, or after a judicial foreclosure of a residential trust deed, and a judgment foreclosing a residential trust deed may not include a money award for the debt against the borrower. ORS 86.797(2) |
| Pennsylvania | Yes, with limits. If the lender buys the home at the sheriff's sale for less than the judgment and wants to collect the balance, it must petition the court to fix the property's fair market value, and must do so within six months after the sheriff's deed is delivered. If the lender does not file in time, the borrower or other interested person may petition to have the judgment marked satisfied. 42 Pa.C.S. §§ 8103, 5522(b)(2) |
| South Carolina | Yes. In a foreclosure, the court may order a borrower who is personally liable to pay any amount of the debt left unpaid after the sale, unless the lender waived it. A defendant facing a personal (deficiency) judgment may, within 30 days after the sale, petition the clerk for an appraisal of the property by three licensed or certified appraisers; if the appraised value minus the sale price equals or exceeds the deficiency, the judgment is cancelled, and otherwise it is reduced by that amount. When a deficiency is sought, bidding remains open for 30 days after the sale. S.C. Code Ann. §§ 29-3-660, 29-3-680, 29-3-700, 29-3-740, 15-39-720 |
| South Dakota | Yes, with limits. After a foreclosure by advertisement where the lender buys the property, the lender must prove to the court that the property sold for its true market value or more before getting a deficiency judgment, and the court adjusts the deficiency accordingly. In a court foreclosure, a lender unwilling to bid the full debt must prove the property's fair and reasonable value at trial; the court sets a minimum bid, and the lender can collect a remaining deficiency only by applying to the court. SDCL §§ 21-48-14, 21-47-16 |
| Tennessee | Yes. After a trustee's or foreclosure sale, the lender may sue for the remaining balance. Absent fraud, collusion, misconduct or irregularity in the sale, the deficiency equals the debt before the sale plus foreclosure and sale costs, minus the property's fair market value at the time of sale. The sale price is presumed to equal fair market value unless the debtor proves by a preponderance of the evidence that the property sold for materially less. The suit must be brought by the earlier of two years after the sale (not counting time a bankruptcy is pending) or the general deadline for enforcing the debt. Tenn. Code Ann. § 35-5-117 |
| Texas | Yes. If a home sells at a non-judicial foreclosure sale for less than the unpaid debt, the lender may sue for the deficiency, but the suit must be brought within two years of the sale. The borrower may ask the court to determine the property's fair market value as of the sale date; if the fair market value is higher than the sale price, the borrower gets an offset. Any money the lender received from private mortgage insurance must be credited to the borrower before a deficiency suit. After a judicial foreclosure sale, a person obligated on the debt may sue within 90 days of the sale to have the fair market value determined for a similar offset. Tex. Prop. Code §§ 51.003, 51.004 |
| Utah | Yes, with limits. After a trustee's sale, the lender may sue for the remaining balance, but only within three months after the sale. The court must find the property's fair market value on the sale date, and the judgment cannot exceed the amount by which the debt (with interest, costs and sale expenses, including trustee's and attorney's fees) exceeds that fair market value. The prevailing party may recover costs and reasonable attorney fees. Utah Code § 57-1-32 |
| Vermont | Yes, if requested. The lender may request a deficiency judgment in the foreclosure complaint, and the court may enter one against the borrower if the sale proceeds do not cover the sale expenses and the amount owed. The request must be made before the court confirms the sale; failing to request it is treated as a waiver of any deficiency judgment against the borrower. 12 V.S.A. § 4954(d) |
| Washington | After a non-judicial trustee's sale, a deficiency judgment may not be obtained against the borrower, grantor or guarantor, except in limited situations for deeds of trust securing commercial loans (and those exceptions do not apply to a property the borrower occupies as a principal residence on the sale date). RCW 61.24.100 |
| West Virginia | West Virginia law recognizes civil actions seeking a deficiency judgment on a debt secured by a deed of trust. After a trustee's sale, the trustee pays the expenses of the sale (including the trustee's commission), then the secured debts, and pays any surplus to the borrower. In an action for a deficiency judgment, the borrower and any co-maker, guarantor, surety or other defendant may not argue as a defense that the property's fair market value was not obtained at a trustee's sale conducted under the statute. W. Va. Code § 38-1-7 |
| Wisconsin | Yes, if requested. The lender may ask in its complaint for a deficiency judgment against every party personally liable for the debt; the deficiency is ordered in the original judgment and entered after the sale is confirmed. For an owner-occupied 1- to 4-family home (and certain other property) on 20 acres or less, if the borrower agreed in the mortgage, the lender may instead elect in its complaint to waive any deficiency, which shortens the waiting period before sale and lets the owner stay in possession until the sale is confirmed. Wis. Stat. §§ 846.04, 846.101 |
| Wyoming | After a foreclosure sale under Wyoming's foreclosure-by-advertisement (power of sale) statutes, the sale proceeds go first to the reasonable expenses of collection and enforcement (including, as allowed by law, the foreclosing lender's attorney's fees), then to the debt secured by the mortgage being foreclosed, then to junior mortgages and liens, with any surplus paid to the borrower on demand. The lender must account to and pay the borrower any surplus, and the borrower is liable for any deficiency. Wyo. Stat. § 34-4-113 |
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.