Finance
Under New York law, a lender who forecloses on a residential property and receives less than the outstanding loan balance may pursue a:
ADeficiency judgment against the borrower, subject to certain limitations under RPAPL § 1371✓ Correct
BSecond mortgage on the borrower's other properties automatically
CCriminal charge against the borrower for breach of contract
DDeficiency judgment only if the property was commercial
Explanation
New York allows lenders to pursue deficiency judgments after a foreclosure sale, but RPAPL § 1371 limits the deficiency to the difference between the debt and the fair market value of the property (not necessarily the foreclosure sale price), and there is a 90-day deadline to apply for the deficiency judgment.
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