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Can the lender come after you for the rest? Deficiency judgments in Montana

If your Montana home was sold at a trustee's sale under the Small Tract Financing Act, the lender cannot get a deficiency judgment against you. If the lender forecloses in court instead, the court can enter a judgment for the balance, unless the mortgage was given to the seller for the purchase price. The lender chooses which way to foreclose a trust indenture.

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Reviewed against Montana law and official sources on October 11, 2026. General information, not legal advice.

Deficiency rules in Montana, point by point

  • No deficiency after a trustee's sale

    After the trustee's sale

    When a trust indenture is foreclosed by advertisement and sale, no further lawsuit or judgment for a deficiency is allowed against you or anyone else who signed or backed the note.

    Mont. Code Ann. § 71-1-317

  • The lender picks the type of foreclosure

    When foreclosure starts

    Trust indentures are used for property of 40 acres or less. The lender can foreclose by advertisement and trustee's sale, or choose a court foreclosure like a mortgage.

    Mont. Code Ann. § 71-1-304

  • Court foreclosure can lead to a deficiency

    After the sheriff's return

    In a court foreclosure, if the sheriff's return shows the sale did not cover the debt, a judgment can be docketed for the balance against anyone personally liable. It becomes a lien on your other real estate.

    Mont. Code Ann. § 71-1-222

  • Seller-financed purchase mortgages

    On foreclosure

    If the mortgage was given to the person who sold you the property for the unpaid purchase price, that seller cannot get a deficiency judgment.

    Mont. Code Ann. § 71-1-232

  • Short sale or deed in lieu

    Before you sign

    We did not find a Montana statute that decides whether you owe a balance after a short sale or deed in lieu. The written agreement controls, so ask for a written release of any remaining debt.

  • How long a judgment lasts and wage limits

    10 years

    A judgment can be enforced by execution within 10 years. Wage garnishment cannot take more than the lesser of 25 percent of your disposable earnings or the amount above 30 times the federal minimum wage each week.

    Mont. Code Ann. §§ 27-2-201, 25-13-101, 25-13-614

  • If you get a deficiency letter

    As soon as it arrives

    First find out whether your home was sold at a trustee's sale or a sheriff's sale after a court case. After a trustee's sale, Montana law bars any deficiency action, so send the letter to Montana Legal Services Association or a lawyer.

    Mont. Code Ann. § 71-1-317

The short answer in Montana

Can the lender come after me for the rest?

Limited

After a trustee's sale by advertisement, the lender cannot get a deficiency judgment against you. If the lender forecloses in court, the court can enter a judgment for the unpaid balance, except on a mortgage given to the seller for the balance of the purchase price.

Mont. Code Ann. §§ 71-1-317, 71-1-222, 71-1-232

Common questions in Montana

Does the Montana no-deficiency rule protect a co-signer?

Yes. After a trustee's sale by advertisement, Montana bars a deficiency judgment against the grantor and also against any surety, successor or other person obligated on the note.

Why would a Montana lender choose a court foreclosure instead of a trustee's sale?

Montana lets the lender choose. A court foreclosure takes longer, but it can lead to a deficiency judgment, while a trustee's sale cannot. If you are served with a foreclosure lawsuit, answer it and get legal help.

How much of my paycheck can be garnished in Montana?

Montana limits garnishment to the lesser of 25 percent of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage. Different limits apply to child support orders.

Step by step

More on foreclosure in Montana

Understand the process

What is happening and how much time there is.

Weigh your options

What can stop it, and what happens if it goes ahead.

Get help now

Who to call, and what to do when a sale is scheduled.

Also in Montana

Property tax foreclosure Claim surplus funds Deficiency judgments (this page)Letters you may get

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Sources for this page

  1. Mont. Code Ann. § 71-1-304, Trust indentures authorized
  2. Mont. Code Ann. § 27-2-201, Actions upon judgments
  3. Mont. Code Ann. § 25-13-101, Time limit for issuing execution
  4. Mont. Code Ann. § 25-13-614, Earnings of judgment debtor
  5. Montana Code Annotated 2025, Title 71, Chapter 1, Part 3: Small Tract Financing Act (table of contents)
  6. Mont. Code Ann. § 71-1-312, Discontinuance of foreclosure when default paid
  7. Mont. Code Ann. § 71-1-313, Conditions for foreclosure by advertisement and sale
  8. Mont. Code Ann. § 71-1-315, Notice, sale, payment
  9. Mont. Code Ann. § 71-1-316, Disposition of proceeds of sale, surplus funds
  10. Mont. Code Ann. § 71-1-317, Deficiency judgment not allowed
  11. Mont. Code Ann. § 71-1-318, Trustee's deed
  12. Mont. Code Ann. § 71-1-319, Possession
  13. Mont. Code Ann. § 71-1-222, Proceedings in foreclosure suits
  14. Mont. Code Ann. § 71-1-232, Deficiency judgment not allowed on purchase price mortgage
  15. Mont. Code Ann. § 25-13-802, Time for redemption
  16. Montana Department of Commerce, Homeowner Assistance Fund
  17. Montana Division of Banking and Financial Institutions, Consumer Information (Foreclosure Prevention)