Legal Question in Real Estate Law in New York

The path for the bank to do anything beyond taking the house is complex.

The bank has to go through a complete foreclosure. Note that you are a defendant in the foreclosure because you're on the title to the house, therefore on the mortgage. If you did not sign the note as well, then stop right there: you have no personal exposure. Just make sure that the insurance is paid, because that promise is in the mortgage. If you signed the note, then Make sure you are represented in the foreclosure proceeding. In fact, you probably should have representation in the proceeding in any case. This should not cost more than $1,250 or so, because it does not entail much: filing a notice of appearance, attending the mandatory settlement conference, and that should be 80% of the work right there.

Anyhow....the bank has to (1) go through a complete foreclosure, with a public sale and all that jazz, then (2) take back the house because nobody bids enough to satisfy the bloodsuckers/&backspc;/ and then (3) within 90 days, obtain an MAI appraisal that shows that the market value of the house is less than the balance adjudged to have been due under the note and mortgage, and bring on a motion for a deficiency judgment.

This assumes that you don't take a few steps in between the busted settlement conference and the foreclosure sale that will usually make the bank give up the right to a deficiency judgment against the absent spouse.

Good luck.