Legal Question in Real Estate Law in New York

Re: county v bank foreclosure

Government has first lien on the property. You may be held responsible for amount due under the promissory note you signed with the bank.

Mike.

Re: county v bank foreclosure

The taxing authority has a priority in foreclosure and comes before the bank. Banks usually get notice of the tax foreclosure and pay the taxes to protect their property.

While you may have liability for a deficiency judgment, I have never seen it happen. I once had an argument with a bankruptcy judge as I claimed it was a possibility of liability claim against my client. The judge said he had never heard of such a thing. So when a judge and a lawyer argue, we go to the books to see who is right. (In a tie the judge wins). It turns out that there is an action for a deficiency judgment against you, but it is so difficult to obtain, and a limited time period that the financing agency just does'nt try.

You can save the property by applying to the courts for a period of time to pay it, or by filing bankruptcy which would give you 5 years to get caught up.

Our office has a concentration in saving houses from tax and from mortgage foreclosures. If you would like to contact this office please feel free to do so.