New York Foreclosure Laws

Foreclosure Laws in New York

New York allows for both judicial foreclosures and non judicial foreclosures to take place, depending on the stipulations of the mortgage involved. If a mortgage contains a Power of Sale clause enabling the lender to pursue a foreclosure unhindered, non judicial procedure is followed. However, most of the time, the foreclosure process requires judicial proceedings. New York foreclosure homes often take very long to process, and they entire timeline can last up to 15 months.

For non-judicial foreclosure proceedings, the lender does not need to notify the homeowner before scheduling a sale. However, if judicial oversight is required, the lender must first file a suit (or Lis Pendens) against the homeowner in the local court. The homeowner then receives a copy of the Notice of Default. A date is set for a hearing, at which the court may find that the homeowner is in default and schedule a foreclosure sale, or may allot a certain amount of time in which they can seek foreclosures help to avoid foreclosures or pay off the default debt. If this does not occur, a sale may go forward. This part of the process may take anywhere from 6 up to 9 months.

A foreclosure sale will be scheduled for no less than four months after a court's ruling. Before the sale, a Notice of Sale must appear in a local newspaper once weekly for four weeks leading up to the day of the sale.

Most foreclosure auctions are held at the county courthouse in a public format where anyone, including the lender, may bid. Once a winning bidder has been established, they are required to pay 10% of the winning bid, and provide the remaining difference within the next thirty days. Once the payment has been procured, ownership of the property is transferred to the winning bidder.

Once a sale is complete, the original homeowner retains no right to redemption.