|
|
Immediate Foreclosure Solutions |
|
HOME |
|
New York Judicial Foreclosure Available: Yes Non-Judicial Foreclosure Available: Yes Preferred Method: Judicial Foreclosure Judicial foreclosure (foreclosure by lawsuit) is
the primary method of foreclosure in New York. Although non-judicial
foreclosure is available, it is seldom used. Non-judicial foreclosure
procedures are sufficiently intricate to lead to potential title disputes.
Such problems might make it very difficult to evict a tenant. Junior lien
holders might also dispute the title and tie the matter up in litigation.
Thus most lenders will elect a judicial foreclosure. Judicial Foreclosure Judicial foreclosure begins when the lender files
a lawsuit. The lender will sue the borrower and any person who has a claim to
the ownership or a possession interest. The lender, as plaintiff, has a
summons and a complaint served on the borrower. The summons commands the
borrower to come to court and answer the lender’s complaint; the complaint is
the lawsuit proper, which describes the lender’s legal and factual basis for
foreclosure. A notice of lis pendens must be filed. The lis pendens is a
notice that a lawsuit is pending, the outcome of which affects title. Often,
the borrower fails to answer. In that event, the court will appoint a referee
to compute a figure for the foreclosure. The court may then sign a judgment
of foreclosure and sale. If the borrower appears and defends against the
lawsuit, then the court will determine the merits of the defense. The referee
will need an oral hearing. If the lender wins, then a judgment of foreclosure
and sale will be awarded. Typically the foreclosure sale is advertised for 4
to 6 weeks. The sale is made by public auction to the highest bidder. The
lender may bid, as well. The lender must distribute the proceeds according to
the terms of the judgment signed by the judge. Surplus money will normally be
held by a referee. Deficiency If the mortgage contains an express covenant to
pay, then the lender may seek a deficiency judgment against the borrower if
the court ordered sale does not produce sufficient funds. The lender can ask
the court for a deficiency judgment for the amount left unpaid after the
foreclosure sale. The motion for the deficiency judgment must be made within
90 days after the foreclosure sale. The court must determine the market value
and credit the greater of the market value or the foreclosure sales price
against what remains unpaid on the loan. Redemption After the judicial foreclosure, there is no
redemption period. This is true of non-judicial foreclosure, as well. |
HOME HELP CONTACT US FAQs
©Immediate Foreclosure Solutions®