New York Foreclosure Process and Laws


Quick Facts About the New York Foreclosure Process

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 120 days

Right of Redemption: No

Deficiency Judgments Allowed: Yes

The state of New York allows lenders to forclose mortgages and deeds of trust using the judicial foreclosure or the non-judicial foreclosure process.

Judicial Foreclosure
In dealing with the judicial foreclosure process, the lender is responsible in filing the complaint to the court. They will release a decree of sale on the property as a prerequisite to foreclosure proceedings. The court may give the borrower a certain period of time before the default is settled. If unsettled after the time period, the sheriff will be orderd to sell the property.

The public will be notified 4 to 6 weeks of this sale. Anyone is allowed to bid even the lender himself. As long as the property will be sold to the highest bidder.

The officer in charge of the sale should release a deed tothe buyer once the property has been sold. He is also tasked to pay the debt with the costs and interests using the money from the bid. A receipt is very important as a proof of payment.

A report of sale must be files 30 days or earlier after the sale is made by the office in charge and the clerk of the court. The lender should present the receipt that must be included in the report.The court is still responsible for confirming sale until 3 months after filing the report of sale.

Non-Judicial Foreclosure
If the power of sale clause is present in the mortgage and the deed of sale, the non-judicial foreclosure process must be followers. This clause states that if the borrower is found in default, the lender has the power to seel the property to pay off the debt. Both the lender or the trustee can decide when to initiate the sale. But in New York, the non-judical foreclosure is seldom used.

Foreclosure Avoidance Counseling

HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.

If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

New York Regional Office

Jacob K. Javits Federal Building
(Broadway – between Duane & Worth Streets)

26 Federal Plaza, Suite 3541
New York, NY 10278-0068
Phone: (212) 264-8000

Fax: (212) 264-0246
TTY: (212) 264-0927

Adolfo Carri├│n
Regional Administrator
Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Albany Field Office

52 Corporate Circle
Albany, NY 12203-5121
Phone: (518) 464-4200

Fax: (518) 464-4300

Robert Scofield

Field Office Director
Office Hours: 7:30 a.m. to 4:00 p.m.,
Monday through Friday

Buffalo Field Office

Lafayette Court

465 Main Street, 2nd Floor
Buffalo, NY 14203-1780
Phone: (716) 551-5755

Fax: (716) 551-5752
TTY: (716) 551-5787

Stephen Banko

Field Office Director
Office Hours: 8:00 a.m. to 4:30 p.m.,

Monday through Friday

Syracuse Field Office

James M. Hanley Federal Building
100 South Clinton Street
P.O. Box 7025

Syracuse, NY 13261-7025

Phone: (315) 477-0616

Fax: (315) 477-0196

Robert Scofield
Acting Field Office Director
Office Hours : 8:00 a.m. to 4:30 p.m.,
Monday through Friday