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Summary:
| Judicial Foreclosure |
Yes |
| Non-Judicial Foreclosure |
Yes, but almost never used |
| Security Instruments |
Deed of Trust, Mortgage |
| Right of Redemption |
No |
| Deficiency Judgments |
Yes |
| Time Frame |
Usually 12-19 months |
Judicial foreclosure is the process almost universally used in New York. The lender must sue the borrower in court and obtain a judgment of foreclosure.
To begin the process a summons and complaint is filed along with a lis pendens. The borrower has 20 days in which to appear in court to answer. If no action is taken by the borrower, the lender will move for a summary judgment.
If granted, the court will appoint a referee who will determine the amount owed and how the property shall be sold. The referee files his report with the court. The court confirms the report and enters a judgment of sale. This stage of the process may take from 12-18 months.
The notice of sale is published weekly for four to six weeks. The sheriff or referee may conduct the sale at the time and place designated in the notice of sale.
The officer conducting the sale will execute a deed to the successful bidder when the sale is complete. The successful bidder must deposit 10% of the bid price at the time of sale, and close with the balance due within 30 days. The officer shall then submit a report of sale to the court for confirmation. The lender may bid the total amount due. If no one else bids, the property reverts to the lender.
A motion for a deficiency judgment, if applicable, must be filed with the court within 90 days of the date of sale. The court will determine the market value of the property and award the greater of market value or auction price to the lender.
Links:
- Action to Foreclose a Mortgage
Chapter 81, Article 13; Real Property Actions and Proceedings Law
- Foreclosure of Mortgage by Power of Sale
Chapter 81, Article 14; Real Property Actions and Proceedings Law
- Action to compel the determination of a claim to real property
Chapter 81, Article 15; Real Property Actions and Proceedings Law
- Judicial authorization of sale, lease, mortgage, acquisition, exchange or voluntary partition
Chapter 81, Article 16; Real Property Actions and Proceedings Law
- H.R. 3449: To extend the protections of the Truth in Lending Act to overdraft protection programs
This bill is in the first stage of the legislative process.
- 265-a. Home equity theft prevention
As of February 1, 2007, certain sales of homes that are in foreclosure or default are now governed by a New York State law under the Home Equity Theft Prevention Act.
- New York State Statutes
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