If the proceeds of the sale are not sufficient to pay in full the amount secured by any mortgage or lien thereby foreclosed, the deficiency shall be determined, and thereupon judgment may be rendered in the cause for the deficiency against any party liable to pay the same who is a party to the cause and has been served with process or has appeared therein, and all persons liable to pay the debt secured by the mortgage or lien may be made parties; but all other proceedings for the collection of the debt shall be stayed during the pendency of the foreclosure suit, and, if a deficiency judgment is finally rendered therein, the other proceedings shall forthwith abate. Other than in the case of a foreclosure by market sale, if the property has sold for less than the appraisal provided for in section 49-25, no judgment shall be rendered in the suit or in any other for the unpaid portion of the debt or debts of the party or parties upon whose motion the sale was ordered, nor shall the same be collected by any other means than from the proceeds of the sale until one-half of the difference between the appraised value and the selling price has been credited upon the debt or debts as of the date of sale; and, when there are two or more debts to which it is to be applied, it shall be apportioned between them.
(1949 Rev., S. 7209; P.A. 79-602, S. 84; P.A. 14-84, S. 11; 14-217, S. 207.)
History: P.A. 79-602 substituted “the” for “such” where appearing; P.A. 14-84 added provision excluding foreclosure by market sale from prohibition on rendering judgment for unpaid portion of debt of the party upon whose motion sale was ordered; P.A. 14-217 changed effective date of P.A. 14-84, S. 11, from October 1, 2014, to January 1, 2015, effective June 13, 2014.
Provision for crediting one-half difference between appraisal and sale price not applicable against subsequent encumbrancer. 89 C. 101. Liability of endorsers for balance of deficiency judgment in separate action. 100 C. 711. Guarantor of note allowed same statutory credit as mortgagor. 113 C. 241. Cited. 120 C. 671; 220 C. 152; Id., 643; 222 C. 784; 227 C. 270; 235 C. 741; 241 C. 269.
Cited. 23 CA 266; 28 CA 809; 31 CA 1; Id., 621; 36 CA 313; 38 CA 240.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.