Long Island and New York City Foreclosure Lawyers
A deficiency judgment is the judgment the bank can obtain against you and your family members after the forclosure sale. By example, in the event you owe the bank $400,000 and your home sells at a foreclosure sale for $200,000, there is a deficiency amount of $200,000. Although the mortgage has been eliminated, the personal obligation portion of your mortgage still exists. The bank can, after the sale, bring a motion to have a deficiency judgment taken against you.
Legal Definition Of Deficiency Judgment
The laws in the State of New York regarding foreclosure sales define deficiency judgments as follows “The whole residue, or so much thereof, as the court may determine to be just and equitable, of the debt remaining unsatisfied, after a sale of the mortgaged property and the application of the proceeds, pursuant to the direction contained of such judgment, the amount thereof to be determined by the court as herein provided.”
Eliminating Deficiency Judgments
Negotiations can be undertaken with the financial institution to avoid a deficiency judgment. In addition, a Chapter 7 or Chapter 13 bankruptcy can be filed to avoid a deficiency judgment.
Avoiding Deficiency Judgments
Mortgage modifications, forbearance agreements, short sales, negotiated resolutions, bankruptcies and other techniques are available to avoid the potential of having a deficiency judgment being taken against you. The foreclosure attorneys at the Law Offices of Schlissel DeCorpo have more than 100 years of combined legal experience. Our highly dedicated, experienced lawyers assists our clients in all aspects of foreclosure defense, mortgage modifications and alternative measures to keep our clients in their homes. Call for a free consultation at 1-800-344-6431, 516-561-6645 and 718-350-2802. Our phones are monitored 7 days a week.