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

A Texas lender is allowed to sue a borrower for a deficiency judgment if the loan is not paid in full with the proceeds of a foreclosure sale. However, the amount that the lender can recover is limited to the difference between the amount owed and the fair market value of the property as determined by a property appraisal.