Call for Free Consultation 512-458-4138

Definition of Deficiency

The difference between the amount owed on a loan and the total amount received/collected after the sale of the collateral. Example You owe $15,000 on a car. The bank repossesses the car and then sells the car at auction for $5,000. The bank will then want to collect the deficiency of $10,000.00 from you.

Back to Definitions


1000 Heritage Center Circle, Suite 102
Round Rock, Texas 78664-4463
ph: 512-458-4138
fax: 512-458-4213
info@austindebt.com
Copyright 2017 Law Office of Nels C. Hansen P.C.
All rights reserved. Disclaimer
Posted October 2015