Confession of Judgment in NYS

Investor · Piermont NY · Member since 2022 · 14 posts · 16 votes

Has any private money lenders, specifically in New York, ever incorporated confession of judgment in their documents? I know it is not illegal to add but there’s a lot of nuances to it. I was just wondering others’ experience on it.

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
1mo
I must confess that I do not know the answer...
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- Richard BautistaPro Member
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  Investor · Piermont NY · Member since 2022 · 14 posts · 16 votes
  1mo
  Quote from @Mike Grudzien:
  
  I must confess that I do not know the answer...
  
  Apparently it's a very powerful tool that accompanies the promissory note where if a borrower defaults, there is no need to go through legal proceedings/sue the borrower. The court will automatically place the judgment. Especially in a mortgage state (as opposed to a DOT state), this will save the lender a lot of time and money in getting their principal back. It is not legal in all states.
  Seeing as NYS is a mortgage state, I'm navigating the nuances of this tool.
  
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- Chris SeveneyBusiness Member
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  Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
  1mo
  @Mike Grudzien yes we incorporate it in all of our loans. in some states it is legal; in others it is not. it is something you typically see on the east coast and not on the west coast. while it has been included in our documents, it still doesn't stop the borrower from contesting but doesn't mean they win just slows the process down
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