Foreclosure Sale

[pambysue]

Hello again. Today I received a notice of sale. It states "Pursuant to a judment of foreclosure and sale, I, the undersigned referee will sell at public auction at the Lobby of City Hall on 4/6/2007 at 12 noon premises..."
My question is, once the sale occurs, how long will it take before I am slapped with a deficiency judgement and they start wage garnishments? I ask because my BK isnt going to be filed until the end of may due to lack of money for my lawyer. And, if they start a garnishment before I get to file, will the filing stop the garnishment??
Thanks for your input!

[pambysue]

followup..

By the way..I am in New York State if that matters.

[BassBoy]

I would say that you may not get a garnishment at all based on your time frame.

Even if the mortgage company is able to get a default judgement filed, granted and begins garnishment, it may only be one payment...and yes, the BK filing will stop the garnishment.

[SinkingFast]

At this website:

http://public.leginfo.state.ny.us/me...MMONQUERY=LAWS

Article 14, Section 1419,..........

2. Not later than ninety days after the delivery to the purchaser of
the power of sale deed to the mortgaged property, the person to whom or entity to which such residue shall be owing may make an application
under the index number assigned the non-judicial proceeding, in the
supreme court for the county in which the mortgaged property is located,
or in a county in which the sale has taken place for a deficiency
judgment against the persons or entities liable therefor upon notice to
such persons or entities. Such notice shall be served personally or in
such other manner as the court may direct. Upon such application, the
court, whether or not the person or entity claimed to be liable for the
residue appears, shall determine, upon reasonable appraisal by a real
estate appraiser licensed in the state of New York, or otherwise as it
shall direct, the fair and reasonable market value of the mortgaged
property as of the date the mortgaged property was bid on at auction or
such nearest earlier date as there shall have been any market value
thereof and shall make an order directing the entry of a deficiency
judgment against the person or entity liable therefor. Such deficiency
judgment shall be for an amount equal to the aggregate amount of the
indebtedness due to the mortgagee, together with all other sums
recoverable under section fourteen hundred seventeen of this article as
such shall be set forth in the report of sale pursuant to subdivision
three of section fourteen hundred fourteen of this article less the
higher of: (a) market value of the mortgaged property as determined by
the court or (b) the sales price of the mortgaged property at the public
sale.
3. If no application for a deficiency judgment shall be made as herein
prescribed, the proceeds of the sale regardless of the amount thereof
shall be deemed to be in full satisfaction of the mortgage debt, and no
right to recover any deficiency in any action or proceeding shall exist.


You should know something for sure within 90 days after the Sale is complete and the Deed/Title has been transferred.

Note that this law is scheduled to be repealed effective July 1, 2009.