Final Judgement of Foreclosure: What is it and How to avoid it

• 17 Jul 2023
• Foreclosure Lawyer

The Process

Foreclosure proceedings begin when a complaint is filed for the property in the state of location. The case is reviewed by a judge and the borrower is asked if they want to contest the complaint. If the property loan has not been met and the foreclosure is not contested a final judgement can be determined. This includes the amount the property can be sold for and is based on the original loan amount. This includes the unpaid balance on the mortgage, fees for the foreclosure process, unpaid interest, tax liens, unpaid utility bills, and legal fees. Any lienholder can be listed within the final judgement provided they have filed suit. The auction price is usually equal to the final judgement.

The Auction

Once the final judgement has been issued, a thirty-day waiting period is generally required before the property can go to auction. Auction sales can be difficult because the sales price is not a reflection of the market value of the property. The starting bid is determined in the final judgement and a deposit of approximately ten percent is required. If the property is sold for an amount greater than the final judgement the property owner can claim the surplus. The original owner must pay the final judgement amount prior to the auction to reclaim the property.

Preventing A Final Judgement

Once a summons and complaint have been received the borrower should deny the allegations of the bank, respond to the complaint, and establish a defense. This slows down the foreclosure. A Suffolk County modification of loan can be submitted and if accepted and considered under review, a minimum of 37 days before the date of sale, federal rules prevent the sale from going through.

This does not ensure the bank will stop the sale of the property. The issue is when an application is considered complete, has numerous interpretations. A small problem with a Request for Mortgage Assistance can cause a mortgage servicer to deny the application as incomplete and refuse cancellation of the sale. If the date of sale is close there may not be enough time to make any necessary changes and the final judgement will go through.

Loan Modifications
A modification attorney Nassau County is necessary for a proper foreclosure defense in achieving a permanent solution. An experienced attorney can defend a borrower from foreclosure and make certain a loan modification is applied for, as quickly as possible. The minute a borrower realizes they require help an attorney should be contacted to provide assistance with the confusing process of foreclosure. Extensive knowledge is required to prevent a failure that could result in the permanent loss of a home. To know more, get in touch with us!

Frequently Asked Questions

Q) What Happens If You Don’t Respond to a Foreclosure Lawsuit?

If you don’t respond, the court may issue a default judgment, allowing the lender to proceed with foreclosure without your input.

Q) What is the difference between summary judgment and final judgment?

Summary judgment is issued when the court decides a case without a full trial, while final judgment is the court’s ultimate decision, concluding the foreclosure process.

Q) How Can I Avoid a Default Judgment in a Foreclosure?

Respond to the foreclosure lawsuit promptly and establish a defense to avoid a default judgment.

Q) How do I prepare for the last Judgement?

Prepare by gathering necessary documents, responding to the court, and possibly seeking legal advice.

Q) What happens if any money remains from the foreclosure sale after paying off the debt?

Any surplus is returned to the borrower or the next lienholder.