After a mortgage foreclosure, if the sale amount was insufficient to cover the debt, the lender may ask for a(n)

A deficiency judgment is a legal remedy that allows a lender to pursue the borrower for any remaining balance owed on a loan after a foreclosure sale. In the case where a foreclosure occurs and the sale of the property does not generate enough funds to cover the outstanding mortgage debt, the lender has the option to seek a deficiency judgment against the borrower for the difference.

This process is significant because it allows the lender to recover losses incurred during the foreclosure process, essentially holding the borrower responsible for the amount that was not satisfied by the sale of the property. The conditions under which a deficiency judgment can be sought can vary based on state laws, including whether the mortgage is a recourse or non-recourse loan, but the key point is that this mechanism exists to protect lenders from losses beyond the physical property.

In contrast, the other options mentioned do not apply in this situation. An assessment refers to a valuation for property tax purposes, an assignment of rents involves transferring the right to collect rents from a tenant to another party, and a deed in lieu of foreclosure is a voluntary transfer of property to the lender, which does not include seeking additional damages post-sale.