Guarantors Can Now Assert Anti-Deficiency Defense In Collection Matters
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Guarantors Can Now Assert Anti-Deficiency Defense In Collection Matters

Thanks to the North Carolina Supreme Court, guarantors are now permitted to raise the anti-deficiency defense where mortgage lenders purchase a foreclosed property for less than fair market value.  Prior to 2015, only the borrower-owner of the property could avail themselves of N.C.G.S. § 45-21.36 and assert the anti-deficiency defense.  The statute states as follows:…