New York Laws

New York foreclosures can be both judicial and non-judicial, but judicial foreclosures tend to be rare due to the presence of Power of Sale clauses in mortgages. These clauses provide the lender with the right to pursue foreclosure in the event of a default without the supervision of the court.

Judicial foreclosures are conducted like lawsuits; the lender files against the homeowner in default in court. The court then decides whether or not to rule against the homeowner at a preliminary hearing. If they do, a foreclosure sale will be scheduled for at least four months after the court issues its ruling. The homeowner can stop the foreclosure proceedings at any point before the sale occurs by paying off the default debt owed to the lender.

In any type of foreclosure, a Notice of Sale must be published in a local weekly newspaper for four consecutive weeks before any sale can occur. On the day of the sale, a court official or trustee of the lender auctions off the property at the county courthouse. Once a winning bidder has been established, that person provides a ten percent deposit on their bid and arranges to pay the rest within thirty days. Once payment is fully procured, the winning bidder assumes all rights to ownership. The homeowner retains no rights to redemption once a sale is complete.

• Click here to begin your search in New York