Foreclosure & Alternatives Law

Can a Lender Sue a Borrower for a Deficiency Judgment if the Lender is Still Owed Money After a Foreclosure Sale in Michigan?

Yes, a lender may sue a borrower for a deficiency judgment in Michigan. However, the borrower has defenses available and may not be required by the court to pay the remainder of the loan amount in certain situations. For example, the borrower and the lender may have entered a separate agreement that provides for a specific monetary amount for which the borrower is liable other than the mortgage amount. The borrower may also claim that the foreclosure sale was for a price under market value as a defense in a deficiency judgment proceeding.