Foreclosure Homes New York City, NY
In New York City NY, the primary method followed to foreclose a sale is a judicial foreclosure. The judicial process takes longer than a non judicial process, so in NYC a mortgage foreclosure can go on four 4 months or sometimes longer. The time taken starts after the owner receives a “notice of default” until the property gets listed on the public foreclosure auction sale.
If the property is not sold at the auction, it becomes a REO or Real Estate Owned. A person who wants to buy a foreclosed home has time only between the days it is listed in an auction until it becomes REO. After it gets into the hands of the real estate, the price of the property would cost more than it would at the time of pre-closure.
In NYC a deficiency judgment is available to the lender of the property in case of pre closure. If the property is listed in the pre foreclosure auction sale at a lower amount than the loan, the lender has the option of seeking a deficiency judgment within 90 days of the sale.
Most of the foreclosures are handled in the court, however, some as an can be held out of court as an exception. Court foreclosures are most common in NY and sometimes could take up to 15 months. It is the longest time taken to foreclose a sale in the entire United States.
The pre foreclosure period is determined as the time when a lender sends a warning to the borrower in the form of a court notice. However, this is not required in NYC. The lender would process the foreclosure through the court and then file a suit against the borrower for the remaining amount. Lis Penden, or a pending law suit is recorded. In case the borrower does not respond to the notification of foreclosure and appear at court, the court authorizes the foreclosure auction.
The problem in New York is that each person gives a different time line to you when you decide to buy a foreclosed property. The key here is to have patience and stick to your deal. It can take anywhere from 6 weeks to 15 months.
There are some specific rules that have to be followed in relation to the notice of sale. The sale is scheduled 4 months after the court rules its decision. After this, the notice of sale has to be advertised in the local newspaper once in a week for at least 4 weeks consecutively before the date of sale.
Since New York uses public auctions for foreclosure sales, the sale is held at the county house by default. The highest bidder in the auction gets the deal and there are no restrictions as to who can bid. Even the lender can bid in the auction. The winning bidder has to pay 10% of the sale amount at the time of the sale and the remaining money has to be paid within the next 30 days. After the full amount has been paid, the winning bidder gets complete position of his or her property and the lender loses his right over the property. After this no decisions can be reversed.