New York Foreclosure Laws

The vast majority of New York foreclosures are administered through the court system. Of all states, New York has one of the longest foreclosure processes. The process can last as much as fifteen months.

Pre-Foreclosure

Although it is not a necessity under New York foreclosure laws, many lender will alert a debtor to the fact that foreclosure is impending. In a judicial New York foreclosure, the lender starts the process by filing a suit in court against the borrower. The suit is for the default amount. The debtor must be alerted to the filing and must appear in court to reply to the complaint. A lis pendens is also recorded as part of the foreclosure process.

If the debtor shows up in court, the court will hear the case to determine whether the property can be foreclosed. If the borrower fails to appear in court or if the court rules in favor of the lender, the foreclosure auction is scheduled. The process from initial filing to the court judgment can often last between seven and nine months.

Notice of Auction

About four months after the court judgment, the auction usually takes place. However, a notice of sale must be published in a local, general circulation newspaper for a month before the auction can take place. This notice must appear in the newspaper at least once per week.

Most foreclosure sales in New York take place at the county courthouse and are public auctions. The winning bidder must pay 10% of the bid amount upfront and must pay the rest of the amount within thirty days of the auction. Once the full bid amount has been paid, ownership of the property is transferred to the winning bidder. Once the sale has taken place, debtors have no period of redemption and no right of redemption.