Finance
In New York, a 'deficiency judgment' following a foreclosure sale means:
AThe lender cannot pursue the borrower after the sale
BIf the foreclosure sale proceeds are insufficient to cover the debt, the lender may pursue the borrower for the remaining balance✓ Correct
CThe property is transferred to the lender tax-free
DThe borrower is automatically discharged from the debt
Explanation
In New York, after a judicial foreclosure sale, if the proceeds are insufficient to cover the outstanding mortgage debt, the lender may seek a deficiency judgment against the borrower for the remaining balance, subject to RPAPL §1371's fair value hearing requirement.
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