A deficiency judgment is a balance owed on a debt that wasn’t covered by what was purchased on that debt. If the house is foreclosed, it could be worth much less than the loan taken out on the property and the borrower could be subject to a deficiency judgment on the difference. We’re seeing a lot of cases coming in where the deficiency is being pursued by debt collectors who are purchasing these debts from the original creditors. It’s important to know that there’s a statute of limitations on when they can peruse deficiency judgments and it’s different for residential property and any other deficiency in the state. For most deficiency judgments, they have 5 years to peruse them. In residential, they have 1 year from date of foreclosure sale or July 1, 2014, whichever comes later.