Deficiency judgment

A deficiency judgment is a judgment lien against a debtor, defendant or borrower whose foreclosure sale did not produce sufficient funds to pay the mortgage in full. This option may or may not be available to the lender, depending on whether they have made a recourse or nonrecourse loan.

The New York statutory definition is this: "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 plaintiff's attorney (in other words, the bank's lawyer) must make a motion to receive such a deficiency judgment. Otherwise, the amount gained from the sale shall be deemed the full amount owed, and the plaintiff has no right to collect the additional debt. However, if the parties (mortgagor and mortgagee) have already agreed in their mortgage or promissory note, then the debtor could be liable for the full amount.

A debtor who has a deficiency judgment should see an attorney for possible remedies, including bankruptcy, an exemption from creditors, an appeal, or a motion. As with all legal research sources on-line, Internet users should take caution before applying such advice to your own case, and perhaps should consult an attorney, barrister, or solicitor.

How a deficiency judgment can effect you the homeowner

Help in preventing financial damage in a foreclosure.

Some basics to consider when you’ve defaulted on a note to a lender. The note involved in a foreclosure or repossession is an "I Owe You": a promise and an obligation for you to pay the debt owed to the lender that financed your property. A deed of trust, or mortgage on the property, is the security for that debt. If you’ve had troubles paying your obligations or are no longer capable of making the payments, you are facing a default situation.

Read more about...

• Sue on the note
• Judicial foreclosure
• Non judicial foreclosure
• Deed in lieu of foreclosure
• Bankruptcy

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They can't get one more dollar from me, aint any left to take.