CHAPTER 9.07. Deficiency

• Jurisdiction: United States

9.07. Deficiency

A mortgage lender has a right under common law to pursue a claim for a judgment on the deficiency between the amount owed and the amount received through foreclosure, provided the loan documents do not limit or restrict such right and subject to the defenses available to the obligor.⁵⁶ Delaware does not have a "one-action" rule as is found in other jurisdictions.⁵⁷

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Notes:

^[56] Note that under the Delaware U.C.C., a secured party might not have a right to pursue a deficiency if the procedural requirements for foreclosure of the collateral are not met. Wilmington Trust Co. v. Conner, 415 A.2d 773 (Del. 1980) (decided under prior law). See also Wilmington Trust Co. v. Vandan, 1985 WL 444628 (De. Com. Pl. Oct. 24, 1985) (where creditor repossessed automobile from debtor and then sold it not in accordance with the sale procedures in the Delaware U.C.C., the creditor was not entitled to a deficiency judgment)...