Legal Question in Real Estate Law in New York

If I foreclose on a house, I was told that the bank can but most of the time does not go after you for the outstanding balance on the mortgage loan even though you forclosed on the house. If we turn the deed to the house over to the mortgage company then can they go after the money if they wanted to. I also heard and would like to know that it would costs the mortgage companies to much to go after everything. Is that true?


Asked on 4/12/12, 3:21 pm

1 Answer from Attorneys
Christopher Mitchell Law Offices of Laurence Kramer, PLLC

If a lender forecloses on your house, and sells it for less than amount that you owe on your mortgage loan, then they do have the right to sue you for the difference (deficiency judgment) and you should anticipate that they will do so. Handing over a Deed in lieu of foreclosure is an option considered by some as a means to protect their credit history from having a foreclosure on record. However, they can still go after the deficiency amount. The additional costs incurred by lending institutions during the process vary greatly. I highly recommend you speak with an attorney immediately if you have been served with a notice of foreclosure or feel that you are in jeopardy of it,

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Answered on 4/16/12, 7:30 am


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