"pay the deficiency" in foreclosure what does that statement mean?

Question

"pay the deficiency" in foreclosure what does that statement mean?

Answer 1

You owe $100,000 on your house.  You don't make the payments.   The bank forecloses.  You are escorted out by the sheriff.  The bank owns the house.  The bank sells the house.  The bank sells it for $90,000.  The deficiency is $10,000.     Someone may be asked to pay it.

Answer 2

If you owed $175,000 on a home that was foreclosed and they sold it at auction for $140,000, the deficiency is $35,000. The lender reserves the right to make this deficiency your responsibility.

This is why short sales are so necessary, because a properly negotiated short sales expunges the liability for the shortage.