Are deficiency judgments permitted in Texas?
Yes. Adeficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures. These judgments are limited to the difference between thefair market value of the property (regardless of what the property sold for at the foreclosure sale) and the defaulted loan amount at the time of sale.Fair market value is determined by appraisal.
