Which States Allow Deficiency Judgments?

Most states allow deficiency judgments and unless the homeowner understands the foreclosure laws in their state, they may be pursued by their former lenders to make payments on an outstanding balance.

That is why, it is important to review the links that I have attached below to further understand the details of deficiency judgments in each state.  Before you follow those links, let’s make sure you understand some important terms in foreclosure.

A deficiency judgment. simply stated, is a court ordered judgment against a borrower for the insufficient funds produced to pay the unpaid balance of the sale of real property upon foreclosure.  Usually deficiency judgments occur in states that have judicial foreclosure laws.

“Judicial states follow the lien theory of mortgages and require foreclosure procedure but allow deficiency judgments against the borrower.” (wikipedia) In a recourse mortgage, the lender can go after the borrower’s other assets or sue to have his or her wages garnished.

“Non-judicial states follow the title (trust-deed theory of mortgages typically allow non-judicial foreclosure procedures, which are fast, but do not allow deficiency judgments.” (wikipedia)  A non-recourse loan cannot be collected even if the funds are short of paying off the loan balance


“In 2014 Geoff Walsh, a staff attorney with the U.S. National Consumer Law Center, said on NPR that the United States is “seeing an uptick” in the pursuit of deficiency claims, because technological developments have enabled large debt-buying institutions and mortgage insurers to more easily pursue former borrowers, who often don’t know their legal rights.[3]” (wikipedia)

 Please review the table below to see if your are located in states allow deficiency judgments.

State Deficiency Judgment
Alabama Yes
Alaska  No
Arizona  No
Arkansas  Yes
California  No
Colorado  Yes
Connecticut Yes
Delaware Yes
District of Columbia Yes
Florida Yes
Georgia Yes
Hawaii No
Idaho Yes
Illinois Yes
Indiana Yes
Iowa Yes
Idaho Yes
Illinois Yes
Indiana Yes
Iowa Yes
 Kansas Yes
 Kentucky Yes
 Louisiana Yes
 Maine Yes
 Maryland  Yes
 Massachusetts Yes
 Michigan Yes
 Minnesota Yes
 Mississippi Yes
 Missouri Yes
 Montana Yes
 Nebraska Yes
 Nevada  No
New Hampshire Yes
New Jersey Yes
New Mexico Yes
New York Yes
North Carolina No
North Dakota No
Ohio Yes
Oklahoma Yes
Oregon No
Pennsylvania Yes
Rhode Island Yes
South Carolina Yes
South Dakota Yes
Tennessee Yes
 Texas Yes
 Utah Yes
Vermont Yes
Virginia Yes
Washington Yes
West Virginia Yes
Wisconsin Yes
Wyoming Yes










The above report has been condensed, however more detail and a compilation of state laws in NCLC’s  “Survey of State Foreclosure Laws,” part of a 2009 NCLC study, “Foreclosing a Dream,” written by John Rao and Geoff Walsh can be reviewed at the 2 links below:

Foreclosures, Foreclosing a Dream, State Laws Deprive Homeowners of Basic Protections,

Foreclosure Report, Survey of State Foreclosure Law

If you were required to pay back a deficiency judgment, let us know the results.  Share your experience.

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