Mont. Code Ann. » TITLE 71. MORTGAGES, PLEDGES, AND LIENS · CHAPTER 1. MORTGAGES · Part 2. Mortgages of Real Property
Montana Code Annotated

Mont. Code Ann. § 71-1-232 (2026)

Deficiency Judgment Not Allowed On Foreclosure Of Purchase Price Mortgage

✓ current as of May 2026
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  1. MCA Contents
  2. TITLE 71
  3. CHAPTER 1
  4. Part 2
  5. 71-1-232 Deficiency judgment not allowed on foreclosure of purchase price mortgage

TITLE 71. MORTGAGES, PLEDGES, AND LIENS

CHAPTER 1. MORTGAGES

Part 2. Mortgages of Real Property

Deficiency Judgment Not Allowed On Foreclosure Of Purchase Price Mortgage

71-1-232. Deficiency judgment not allowed on foreclosure of purchase price mortgage. Upon the foreclosure of any mortgage, executed to any vendor of real property or to the vendor's heirs, executors, administrators, or assigns for the balance of the purchase price of the real property, the mortgagee is not entitled to a deficiency judgment on account of the mortgage or note or obligation secured by the mortgage.

History: En. Sec. 1, Ch. 2, L. 1935; re-en. Sec. 9473.1, R.C.M. 1935; R.C.M. 1947, 93-6008; amd. Sec. 2248, Ch. 56, L. 2009.

Notes of Decisions
Cited in 12 cases, 1987–2010 · leading case: Fadness v. Cody, 951 P.2d 584 (Mont. 1997).
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Fadness v. Cody, 951 P.2d 584 (Mont. 1997). · cites it 10× “Pursuant to § 71-1-232, MCA, the Fadnesses were precluded from recovering a deficiency judgment related to the debt secured by the mortgage.”
Trs. of Washington — Idaho — Montana Carpenters — Employers Ret. Trust Fund v. Galleria P'ship, 780 P.2d 608 (Mont. 1989). · cites it 6× “Section 71-1-232, MCA. Galleria Partnership contends in this case that because the Trustees lent the money, knowing that the proceeds of the loan would be used by the Partnership to pay off Galleria Associates, the prior partnership, for the purchase of the real property, that…”
Farm Credit Bank of Spokane v. Hill, 879 P.2d 1158 (Mont. 1993). · cites it 10× “IV Did the District Court err when it ordered that Farm Credit Bank was entitled to a deficiency judgment? The Hills contend that the District Court erred when it allowed FCB to recover a deficiency judgment because § 71-1-232, MCA, does not allow deficiency judgments where the…”
First Fed. Sav. & Loan Ass'n v. Anderson, 777 P.2d 1281 (Mont. 1989). · cites it 8× “The Andersons also argue that because First Federal supplied the finances which enabled the Andersons to enter into the purchase of the subject property that Andersons are entitled to the protection of § 71-1-232, MCA, which precludes a deficiency judgment on foreclosure of a…”
Aetna Life Ins. Co. v. Slack, 756 P.2d 1140 (Mont. 1988). · cites it 6× “Slack relies on Section 71-1-232, MCA, which states: “Upon the foreclosure of any mortgage, executed to any vendor of real property or to his heirs, executors, administrators, or assigns for the balance of the purchase price of such real property, the mortgage shall not be…”
Deschamps v. Treasure State Trailer Court, Ltd., 2010 MT 74 (Mont. 2010). · cites it 5× “¶44 Although neither party cites this statute, the provisions of § 71-1-232, MCA, are arguably germane to this issue.”
Fitch v. Buffalo Fed. Sav. & Loan Ass'n, 751 P.2d 1309 (Wyo. 1988). · cites it 2× “Mont. Code Ann. § 71-1-232 (1987). Other states allow deficiency suits but require judicial supervision in valuing the property to determine the amount of the deficiency after foreclosure by advertisement *1313 and sale and/or judicial decree.”
McGregor v. Madsen, 832 P.2d 779 (Mont. 1992). · cites it 8× “They argue that § 71-1-232, MCA, prevents the McGregors from suing on the note.”
Aveco Props., Inc. v. Nicholson, 747 P.2d 1358 (Mont. 1987). · cites it 2× “In discussing Glacier Campground, the court said that it rejected Nicholson’s suggestion that the document be declared a mortgage rather than a contract because: “In invoking this statute, [Section 71-1-232 (1985) formerly Section 93-6008, R.”
Swenson v. Ramage, 762 P.2d 851 (Mont. 1988). · cites it 15× “Reely, and Delbert Ashmore, appeal the decision of the District Court of the Nineteenth Judicial District, Lincoln County, finding that the mortgage executed in favor of plaintiffs was a purchase money mortgage and therefore, by reasons of Section 71-1-232, MCA, denied…”
Lost Mountain Dev. Co. v. Rufus King v. Matthew B. Kezar (Tenn. Ct. App. 2006). · cites it 2× “§ 580(b); Mont. Code Ann. § 71-1-232 ; N.C. Gen. Stat.”
Wash.-Ida.-Mont. Ret. v. Gall (Mont. 1989). · cites it 3× “Section 71-1-232, MCA. Galleria Partnership contends in this case that because the Trustees lent the money, knowing that the proceeds of the loan would be used by the Partnership to pay off Galleria Associates, the prior partnership, for the purchase of the real property, that…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.