Legal Question in Real Estate Law in New York

If you foreclose on your home and when you have to get out of the house, can the mortgage bank still go after you for the money that was owed to them.


Asked on 4/12/12, 12:34 pm

3 Answers from Attorneys
Kristen Browde Browde Law, P.C.

Yes.

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Answered on 4/12/12, 12:36 pm
Kevin Connolly Kevin J. Connolly

It is not easy. The holder of the mortgage note has to credit the mortgagor with the greater of (a) the net proceeds of the sale or (b) the fair market value of the property. The lender needs an appraisal of the property, and the action--known as a Proceeding for a Deficiency Judgment--has to be commenced in short order after the sale. Because of the tight schedule and expense, very few banks actually enter deficiency judgments. But they can.

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Answered on 4/12/12, 1:00 pm
Michael Markowitz Michael A. Markowitz, PC

Generally, yes.

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Answered on 4/13/12, 10:57 am


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