Authors
Alexander C. Berger
Associate, New York
aberger@goulstonstorrs.com+1 212 878 5047
Charles R. Jacob III
Of Counsel, New York
cjacob@goulstonstorrs.com+1 212 878 5143Source
City Biz
Related Expertise
You just finished the foreclosure process but the asset securing the loan was not worth enough to recover the entire amount of the debt. What happens now that there is a deficiency? Depending on the jurisdiction, a lender may be able to file for a deficiency judgment against the borrower or any guarantors. A deficiency judgment allows a lender (or mortgagee) to recover the remaining debt against the borrower and any guarantors following a foreclosure sale.
Many states restrict a lender’s ability to obtain a deficiency judgment, and some states do not allow a deficiency judgment following a non-judicial foreclosure. Because the procedure for computing the amount of deficiency judgments is state-specific, this article will focus solely on what you need to know about the deficiency computation process in Massachusetts and New York.
Read more from attorneys Alexander Berger and Chuck Jacob in City Biz.
Depending on the jurisdiction, a lender may be able to file for a deficiency judgment against the borrower or any guarantors.
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