Finance category
Mortgage, loan, investing, tax, and money calculators.
Deficiency Judgment Risk Calculator
Deficiency judgments may not collect. This calculator sizes real recovery.
Net deficiency recovery
$105,000
Deficiency amount
$700,000
Collectible cap
$700,000
How the math works
Deficiency = unpaid principal − sale recovery. Collectible = min(deficiency, net worth). Net recovery = collectible × collection rate.
Deficiency judgments look attractive on paper but rarely outperform expectations. Even with a visible $1.8M net worth target, 15% collection rate leaves just $270k expected recovery on a $700k deficiency — compare to the cost of pursuing (legal, time, opportunity) before filing.
How to Use
- Enter unpaid principal.
- Enter foreclosure sale recovery.
- Enter borrower net worth.
- Enter collection rate %.
- Read net deficiency recovery.
Frequently Asked Questions
Deficiency ruling?
Some states allow deficiency judgment (lender can pursue borrower after foreclosure sale). Others prohibit (CA on residential purchase money, AZ, etc.). Check state law — affects DIL vs foreclosure decision.
Collection rate?
Deficiency judgments collect 5-20% on average. Low because: borrowers often bankrupt, judgment-proof assets, garnishment limited. Worth pursuing only when clear judgment-proof exemptions don't apply and assets visible.
Strategy?
Evaluate collection prospect before foreclosure. If deficiency unlikely collectible, DIL preferable (faster, cleaner). If collectible (borrower has assets), foreclosure with deficiency may yield more than DIL for a small additional cost.
How often should I rerun this?
Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.
Related Calculators
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Deferred Rent Catchup Calculator
Catchup payment schedule for deferred rent owed after a hardship, forbearance, or concession period.
Next calculator
Delinquency Cost Calculator
Size the total cost of falling behind on a mortgage: late fees, accrued interest, credit damage, and potential foreclosure exposure.