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Can The Bank Get A Deficiency Judgment Against Me If There’s A Forbearance Agreement?

During the forbearance period, the lender has agreed not to foreclose on the property and resell it, so once a forbearance agreement is entered into, as long as you meet the terms on your end, you are safe from foreclosure and deficiency judgments until that agreement expires.

However, if at the end of the forbearance agreement you are not able to make your mortgage payments and the bank ultimately forecloses, sells, and pursues a deficiency judgment, the period covered by the forbearance agreement will be calculated against you as part of the deficiency.

Given that, a forbearance agreement is still a good choice for many New York homeowners fighting to get current on their mortgage and stay in their homes.

If you need help evaluating the pros and cons of the strategies available to you, call the mortgage defense attorneys at Zelenitz, Shapiro & D’Agostino today at 718-599-1111 for a free consultation.