When a lender forecloses on a home but does not satisfy the outstanding debt, what action can the lender take?

When a lender forecloses on a property and finds that the sale does not cover the outstanding debt—the difference between the sale price and the mortgage balance—it can seek a deficiency judgment. This legal action allows the lender to pursue the borrower for the remaining balance owed after the foreclosure sale.

If the lender successfully obtains a deficiency judgment, it can lead to placing a lien against other properties owned by the borrower, allowing the lender to recoup some of the lost funds. This process is significant because it underscores the borrower's ongoing financial responsibility despite the foreclosure, potentially impacting their credit and future financial transactions.

The other options do not align with the lender's rights and responsibilities following a foreclosure process where a debt remains unfulfilled. For instance, not pursuing the borrower for the deficiency would mean forfeiting the right to recover the remaining debt, while filing a claim with the real estate recovery fund is not generally applicable in this scenario. Additionally, not bidding on the home does not address the lender's need to recover the outstanding debt. Thus, the action of being awarded a deficiency judgment and placing a lien is a crucial aspect of the lender's recourse in such situations.