Deficiency Suit Law and Legal Definition
Deficiency suit is an action brought to recover the difference between a mortgage debt and the amount realized on foreclosure. Based on the deficiency suit, the court may render a deficiency judgment against a debtor if the creditor fails to realize the full amount after a foreclosure.
A secured party who, after default by the debtors, repossesses the collateral and conducts the sale thereof is barred from suing for a deficiency where he failed to notify the debtor of the sale. [Maryland Nat'l Bank v. Wathen, 288 Md. 119, 414 A.2d 1261 (1980)].
