Long Island Foreclosure Lawyer

Understanding the Facts about Deficiency Judgments

The state of New York defines deficiency judgments as such: "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 directions contained in such judgment, the amount thereof to be determined by the court as herein provided." In other words, it is a judgment lien against a defendant, borrower or debtor who failed to pay the mortgage in full due to insufficient funds. Although deficiency judgment is not permitted in all states, New York allows the motion provided that a set of requirements is met. The steps to qualify include a commitment to pay the debt, the actual property value must be under the amount of the debt, there must be personal service of the deficiency motion and the foreclosure summons, the defendant must be named in both the deficiency motion and the foreclosure summons, the debt cannot have been dismissed by the bankruptcy court and the judgment must be collectable. As the specific details of deficiency judgment can be complicated, getting in touch with a Long Island foreclosure attorney is a great first step.

Before risking a deficiency judgment, it is best to consider other options when dealing with foreclosure. For example, you might communicate promptly and respectfully with your lender, seek help to achieve a mortgage modification, having unpaid payments waived temporarily or even lowering the payments. Never make a rash legal decision before conferring with a qualified lawyer first.

When dealing with a highly specialized foreclosure issue, speaking with the right lawyer could not be more important. Blutter & Blutter has over 50 years of combined experience dealing with the specific concerns involved in a deficiency judgment , and what actions to take to avoid this serious problem. The firm provides a forceful and effective approach to foreclosure defense.

Put yourself in the right and contact a Long Island foreclosure defense attorney today.