Protecting New York Homeowners From Post-Foreclosure Debt
Losing a home to
foreclosure is already a difficult experience—but for many homeowners, the challenges don’t end there. In some cases, lenders may still pursue additional payment after the property has been sold, claiming the sale didn’t cover the full balance of the mortgage. This remaining debt can lead to what’s known as a deficiency judgment.
If you’re facing this situation in New York,
Snider Law PLLC is here to help. Our firm represents homeowners throughout Garden City and the surrounding areas who are dealing with the financial and legal burdens of foreclosure. We provide knowledgeable guidance and strong defense strategies to help protect your assets, your rights, and your future.
What Is a Deficiency Judgment?
When a homeowner falls behind on mortgage payments and a property goes into foreclosure, the lender will sell the home to recover as much of the outstanding loan balance as possible. However, if the sale proceeds do not cover the total debt owed, the remaining balance—known as the “deficiency”—can lead to a deficiency judgment.
A deficiency judgment allows the lender to pursue the borrower for the difference between what was owed on the mortgage and what the property sold for at auction. For example, if the total loan balance is $300,000 and the home sells for $250,000, the remaining $50,000 could become subject to a deficiency judgment.
In New York, lenders must follow specific procedures to obtain such a judgment, including filing a motion within a defined timeframe. If approved, they can use various legal means to collect—such as wage garnishment or bank levies—until the remaining debt is satisfied.
How Deficiency Judgments Arise After Foreclosure
Deficiency judgments typically come into play after a property foreclosure sale. Here’s a closer look at how the process unfolds:
- Foreclosure and Sale: The lender forecloses on the property and sells it at a public auction.
- Calculation of Deficiency: The court determines whether the sale price was less than the total amount owed on the mortgage, including interest, fees, and court costs.
- Lender’s Motion: To obtain a deficiency judgment, the lender must file a motion within 90 days after the foreclosure sale is finalized.
- Court Review: The court reviews whether the property’s fair market value was properly assessed and whether the borrower is still liable for any remaining debt.
- Judgment and Collection: If granted, the lender may attempt to collect the remaining balance through legal collection efforts.
Borrowers facing this situation may believe the foreclosure ends their financial obligation—but in many cases, the lender continues to pursue repayment. That’s where having an experienced Garden City deficiency judgments lawyer can make all the difference.
Why Choose Snider Law PLLC for Deficiency Judgment Defense
Deficiency judgment cases require a deep understanding of both foreclosure law and debt collection practices in New York. Snider Law PLLC provides clients with experienced, strategic representation focused on protecting their financial future and property rights.
When you work with Snider Law PLLC, you can expect:
- Extensive Knowledge of New York Foreclosure Law: Our firm is familiar with the strict procedures lenders must follow to obtain a deficiency judgment, giving us the tools to identify any errors or violations that could protect you.
- Aggressive Defense Strategies: We explore every possible defense, from improper notice to inaccurate property valuation, to challenge a lender’s claim.
- Negotiation and Settlement Skills: In some cases, we can negotiate with lenders to reduce or eliminate the deficiency balance, sparing you from further financial hardship.
- Comprehensive Financial Protection: Beyond the immediate case, we advise clients on the broader financial implications, including credit impact and potential bankruptcy considerations.
- Personalized Legal Guidance: Every client’s situation is unique. We tailor our approach to your specific goals—whether that means defending against a judgment, negotiating a settlement, or exploring debt relief options.
Our firm’s commitment is to help clients in Garden City and throughout New York find relief from the overwhelming stress of foreclosure and post-foreclosure debt collection.
Protecting Your Rights After Foreclosure
Many borrowers are unaware that they have legal rights and defenses after a foreclosure is completed. In some instances, lenders make procedural errors, overstate the amount owed, or undervalue the property to increase the deficiency balance. A knowledgeable attorney can review your case to ensure all calculations and filings are accurate—and intervene when they’re not.
Additionally, if you’ve already received notice of a deficiency judgment motion, prompt legal action is critical. The window to contest or challenge a lender’s motion is limited, and missing key deadlines can eliminate your ability to fight the claim.
By acting quickly, Snider Law PLLC can help protect your assets and work toward resolving the debt in a way that minimizes long-term financial damage.
Contact Our Garden City Deficiency Judgements Attorney Today
Facing a deficiency judgment after losing a home can feel like an overwhelming setback—but you don’t have to handle it alone. The right legal representation can mean the difference between continued financial struggle and a manageable resolution.
Snider Law PLLC offers dedicated support and proven experience to defend against deficiency judgments in Garden City and throughout New York. If you are dealing with the aftermath of foreclosure and have been contacted by a lender about an unpaid balance, reach out today to discuss your options with a Garden City deficiency judgments lawyer who will fight for your financial future.
