• Lisa Simpson
• May 26,2008
• In: Foreclosure Homes

New York Foreclosure Homes

The property foreclosure happens when the borrower is unable to pay the due amount to the lender. In New York the properties are secured through mortgages rather than deeds of trust. There are both judicial and non-judicial foreclosures methods in New York. The non judicial process is rare in New York as in it the foreclosure procedure does not involve the state courts and is managed by the Trustee Sales at the county level. In the judicial foreclosures the courts look after the complete foreclosure proceedings and then the property is sold at a public auction. The court that gives the jurisdiction over the foreclosure is the Supreme Court of the county where the property is located. The New York foreclosures laws are written in New York State Consolidated Laws, Article 13. After filing the Lis Pendens for the foreclosure proceedings it takes a lot of time for the actual property auction of New York foreclosure homes. As every person involved in the procedure like mortgage holder, creditors and tenants of the owner are served with involved papers.

Bank foreclosure process

When the borrower fails to pay the credits to the bank then the bank send a warning letter of impending foreclosure to the borrower. Thereafter the bank files a suit against the borrower regarding the defaulted amount. And after that the borrower is notified about the foreclosure proceedings and then he has to appear in the court. And if in any case the borrower does not appear in front of court then the court will give the permission for the foreclosure sale. After the borrower appears in court and if the court gives decision against the borrower, then the foreclosure sale is scheduled at least 4 months after the court ruling. Now the foreclosure notice will be published in local newspaper before the sale at least four times with once in a week publication. The foreclosure sales of New York foreclosure homes are held at the county courthouse and by public auction the highest bidder will get the property. And now the winning bidder can own the property by paying ten percent of the final bid at the sale auction, and the remaining balance amount in 30 days. If the foreclosure home is sold at an amount less than the loan amount then the borrower still owes the difference amount to the bank. And the bank can enforce this right by filing a motion within 90 days of the property sale auction. The borrower has no redemption rights so he cannot claim his property back during the foreclosure proceedings.

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