What is a deficiency judgement? Kiritsis Law Group 212 922 0005

May 13, 2021

By: John Kiritsis, Esq., CPA, MBA, MS, JD, LL.M

Generally, it refers to the holder of the note being able to obtain a judgement against the maker of the note, for the difference needed for a foreclosure sale to be sufficient to pay the note in full at the end of the foreclosure sale. A deficiency judgement is almost always an unsecured money judgement. The possibility of a deficiency judgement is often determined on whether the borrower obtained a recourse or a non recourse loan from the lender. Also, the permission of deficiency judgement could often depend on which legal theory of mortgages, a jurisdiction follows. A jurisdiction which has adopted a title theory would tend to disfavor deficiency judgement, because it tends to allow lenders to exercise faster non-judicial foreclosure procedures. However, jurisdictions which have adopted the lien theory are more receptive to permitting deficiency judgements, because they tend to require judicial foreclosures. Depending on the jurisdiction, a deficiency judgement, may bring a borrower’s credit score down. Also, in some cases a deficiency judgement may make a property worthless, because it may lead to lack of adequate title insurance and/or dissuade a potential buyer from buying a property that is moved in litigation.

 

Law Offices of Kiritsis & Associates

Phone # 212 922 0005

Manhattan Office (Main Office):

633 Third Avenue

New York, NY 10017

Suite 1306

Brooklyn Office (By Appointment Only):

1023 74th Street

Brooklyn, NY 11228

1st Floor

New Jersey Office:

7309 Ventnor Avenue

Ventnor, NJ 08406

2nd Floor

 

ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.

We hope you would find this website useful with regards to finding potentially relevant information for your legal issue.   The Law Offices of Kiritsis & Associates PLLC is a boutique law Firm Group headquartered in Midtown Manhattan, with offices in Manhattan, Brooklyn (NY) and New Jersey.  We strive to provide professional legal services for individuals and various business entities.  Our clientele ranges from including aspiring entrepreneurs, startups to established business organizations.

We offer flat fee prices for many of the practice areas provided listed throughout our website.  For more information on the topic you may be interested, or simply to find out how our law Firm Group can help, you may click at any of our site's links.

 

We are available for existing and potentially new clients 7 days a week -- via online, phone and/or in person.

Phone# 212-922-0005

 

Intellectual Property Disclaimer(s):

Copyright 2021

The materials available through this website and any other websites owned by John Kiritsis (individually and collectively, the "Website") are the property of John Kiritsis and his entities, and are protected by copyright, trademark and other intellectual property laws.  You may not use, reproduce, download, store, post, broadcast, transmit, modify, sell or make available to the public content from the Website without the prior written approval of John Kiritsis.  Be aware that any unauthorized use of John Kiritsis trademarks and copyrighted content for commercial purposes in violation of John Kiritsis's intellectual property rights will be vigorously enforced.  All other trademarks, service marks and trade names referenced in this site are the property of John Kiritsis.