Deficiency Judgment Laws by State
Will the bank sue me after foreclosure? If your home sells for less than the mortgage balance, the difference is a deficiency. Many states allow lenders to pursue a deficiency judgment—others limit or bar it in common processes. Use the table below to see typical rules for your state (most-common process). It’s reference only—get local legal advice.
A deficiency is the gap the sale did not cover
If the foreclosure sale brings less than the loan balance, the shortfall is the deficiency.
A judgment makes it personal debt
A court order can make you personally liable for the unpaid balance after the sale.
Some states bar it outright
Others allow it only with conditions, such as confirmation of the sale or personal service.
| State ▾ | CommonForeclosureProcess ▾ | DeficiencyJudgmentAllowed ▾ | ConditionsSummary ▾ | SourceURL ▾ |
|---|---|---|---|---|
| Alabama | Nonjudicial | Yes | Allowed under common process. | View source |
| Arizona | Nonjudicial | Not for 1–2 family on ≤2.5 acres | Anti-deficiency for typical homes/2.5 acres or less. | View source |
| Arkansas | Nonjudicial | Yes | Permitted after sale. | View source |
| Colorado | Nonjudicial | Yes | Permitted after sale. | View source |
| Connecticut | Judicial | Yes | Permitted; judicial process. | View source |
| Delaware | Judicial | Yes | Permitted; up to confirmation. | View source |
| Florida | Judicial | Yes | Permitted; subject to court. | View source |
| Georgia | Nonjudicial | Yes, if court confirms sale | Confirmation required. | View source |
| Idaho | Nonjudicial | Yes | Permitted; nonjudicial process. | View source |
| Illinois | Judicial | Yes, with personal service/appearance | Limited if no personal service. | View source |
| Indiana | Judicial | Sometimes | Varies by case; see statute. | View source |
| Iowa | Judicial | Sometimes | Varies; some judicial nuances. | View source |
| Kansas | Judicial | Yes | Unless service by publication with no appearance. | View source |
| Kentucky | Judicial | Yes | Generally permitted. | View source |
| Louisiana | Judicial | Yes | Executory proceeding allows deficiency. | View source |
| Massachusetts | Nonjudicial | Yes | Permitted after nonjudicial sale. | View source |
| Michigan | Nonjudicial | Yes | Permitted after sale. | View source |
| Minnesota | Nonjudicial | No (in most cases) | Anti-deficiency in most nonjudicial cases. | View source |
| Mississippi | Nonjudicial | Yes | Permitted after sale. | View source |
| Missouri | Nonjudicial | Yes | Permitted; sometimes limited. | View source |
| New Jersey | Judicial | Yes | Permitted; redemption/confirmation interplay. | View source |
| North Carolina | Nonjudicial | Yes, in some cases | Permitted with conditions; upset-bid process. | View source |
| Ohio | Judicial | Yes | Permitted up to confirmation. | View source |
| Pennsylvania | Judicial | Yes | Permitted after sale. | View source |
| South Carolina | Judicial | Yes | Permitted; upset-bid nuance if deficiency sought. | View source |
| Tennessee | Nonjudicial | Yes | Permitted; docs may waive redemption. | View source |
| Texas | Nonjudicial | Yes | Permitted after sale. | View source |
| Utah | Nonjudicial | Yes | Permitted after sale. | View source |
| Virginia | Nonjudicial | Yes | Permitted after sale. | View source |
| New York | Judicial | Yes, if personally served or appears | Limited if no personal service. | View source |
| Wisconsin | Judicial | Yes | Permitted after judgment/sale. | View source |
Last reviewed: August 2026 by Aldric Property SolutionsReference only — not legal adviceSort by tapping a column headingSwipe the table sideways — the state and the headings stay pinned
Frequently asked
01What is a deficiency judgment?
A court order making you personally liable for the unpaid balance after a foreclosure sale.
02Does every state allow it?
No. Some bar deficiencies in the common process; others allow them only with conditions (e.g. confirmation, personal service).
03Can I avoid a deficiency?
Sometimes via non-recourse loans, anti-deficiency statutes, short sales with waivers, or negotiated releases. (State-specific.)
Avoid a deficiency—sell before the sale
We can buy your home for cash before foreclosure, helping you avoid auction, fees, and potential deficiency exposure.
This page is a general reference for the states Aldric Property Solutions serves. It is not legal, tax or financial advice, and statutes change. Confirm your own situation with a licensed attorney or advisor in your state before acting on anything here.