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A judgment for an amount not covered by the value of security put up for a loan or installment payments. in most states the party owed money can only get a deficiency judgment if he/she chooses to file a suit for judicial foreclosure instead of just foreclosing on real property. however, some states allow a lawsuit for a deficiency after foreclosure on the mortgage or deed of trust. the right to a deficiency judgment is often written into a lease or installment contract on a vehicle. there is a danger that the sale of a repossessed vehicle will be at a wholesale price or to a friend at a sheriff’s sale or auction, leaving the debtor holding the bag for the difference between the sale price and remainder due on the lease or contract.

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