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What is the final judgement amount in a foreclosure listing?

New York, NY |

If you buy a foreclosure, do you have to pay the lender back this amount of money?

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I assume your question is: If you buy a property in a foreclosure sale, do you have to pay the lender back this amount of money?
Assuming that to be your question, the answer is no. The "final judgment amount" is the amount due to the lender under the note with the homeowner; that note is secured by the property which is under foreclosure. You're only buying the property (not the note) in a foreclosure sale. That sale is usually by auction in New York, and goes to the highest bidder. Thus, for example, if the amount owed by the homeowner to the lender is $500,000, and the highest bid on the property is $250,000, you get the property for $250,000 and are not liable for the remaining $250,000.

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You have to pay your bid. If there is competitive bidding the lender will bid its lien, meaning the second bid must exceed the lien. Bidding goes from there.


R can speak Attorney CHittuto New YOrk law and procedure better than I because I am only licensed in Massachusetts and Connecticut.

I agree that you are only buying the property, not the Note, thus the auction is held to get the highest possible pric for the property on the hopes today off the NOte (a tough thing to do in today's real estate market)

However if the property was foreclosed on urportedly) by a large national bank, there is no "lender" as the loan has been securitized and sold as an investment whereby large pension funds bought the right to the monthly principal and interest payments from a selected pool of loans

Proving ownership and title to these loans will be difficult at best if competently opposed (for an example refer to a case I won against U.S. Bank and Wells Fargo in a case decided by the Massachusetts Supreme Judicial Court in U.S. Bank v. Ibanez

Personally I wold not go near a foreclosed property in these situations as I believe the title is hopelessly defective

Best of luck

Glenn F. Russell, Jr.

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