If my home is in the process of foreclosure, when it is all finished will I be obligated to pay anything back to the bank?

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If my home is in the process of foreclosure, when it is all finished will I be obligated to pay anything back to the bank?

Asked on January 2, 2013 under Real Estate Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Your state allows what are known as "deficiency judgments." That means that if your home is foreclosed and sold at a foreclosure sale/auction, if it brings in less money than the remaining balance of your loan, the lender does have the right to sue you for the difference between what you owed and what it recovered by selling your home. Not all lenders will do this, but it is an option for them.


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