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New York |
State Capitol Albany, NY 12224 Ph: (518) 474-1778 Fax: (518) 474-0714 |
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Summary:
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.
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