A judgment against the personal assets of a mortgagor following foreclosure is known as what?

A judgment against the personal assets of a mortgagor following foreclosure is referred to as a deficiency judgment. This occurs when a property is sold at foreclosure for less than the amount owed on the mortgage. If the sale price is insufficient to cover the outstanding debt, the lender may pursue a deficiency judgment to recover the remaining balance from the borrower's personal assets. The court grants this judgment, allowing the lender to collect the shortfall through other legal means, such as garnishing wages or placing liens on other properties owned by the borrower.

This concept is critical in real estate and mortgage transactions because it highlights the financial responsibilities that remain for the borrower even after a foreclosure process, emphasizing the potential lasting repercussions of failing to meet mortgage obligations.