In a sale without appraisement, the lender forfeits which right?

• A. A deficiency judgment
• B. A foreclosure
• C. An insurance claim
• D. A lien on other property

Answer: (A)

Deficiency judgments are claims a lender would use to recover any unpaid balance after a foreclosure sale. When a foreclosure sale happens without appraising the property beforehand, the rule in many jurisdictions is that the lender cannot seek a deficiency judgment. The sale price is treated as settling the debt, so the borrower is released from any remaining liability beyond what the sale proceeds cover. Insurance claims or liens on other property aren’t relevant remedies in this context, and the sale process itself is the step that determines the lender’s recovery. So the right forfeited is the ability to obtain a deficiency judgment.