What is the name of the court order that requires the defaulted borrower to pay any remaining balance owed to the lender?

The correct answer is deficiency judgment, which is a court order issued in cases where a borrower defaults on their loan and the sale of their property does not cover the remaining balance owed to the lender. This legal remedy allows the lender to recover the difference between the outstanding debt and the sale price of the property.

In situations where a borrower has taken out a mortgage and faced foreclosure, if the property is sold at a price that is lower than what they owe, the lender can seek this judgment to ensure that they can still recoup the unpaid portion of the loan. The deficiency judgment effectively enables the lender to collect the remaining debt directly from the borrower, thereby offering protection against losses incurred due to the foreclosure.

Understanding this concept is vital for comprehending the ramifications of defaulting on a loan, especially in real estate transactions. It underscores the importance of keeping up with mortgage payments to avoid further financial obligations beyond the loss of the property.