What does the foreclosure process include in new york?

by oliver on September 30, 2010


What does the foreclosure process include in New York?

They say the process starts the sixth of September but what does that even mean?
Can we still pay after the sixth and save our house?
How long does the process take?
Will they tell us the day they will foreclose on the house exactly?


The foreclosure process may be handled in two different ways namely non-judicial and judicial. The more commonly used process in this state is the judicial process which involves lawyers and courts. The lender will sue the borrower in court in order to obtain a judgment of foreclosure. A summons and a complaint must be filed in addition to a lis pendens. The borrower must appear in court within a period of 20 days in order to respond to the complaint. If the borrower does not respond to the complaint at that given time, the lender will pursue a summary judgment against him.

Afterwards, a referee will be assigned to determine the total amount debt owed and decides how the property will be sold. This stage usually takes 12 to 18 months. Once these things all determined, a Notice of Sale will be issued about 4 to 6 weeks prior to the actual date of sale. During the sale or auction, the highest bidder will be the one who get to own the property. After the auction, the lender still has the right to sue the borrower for a deficiency judgment if the highest bid was less than the total amount owed by the borrower.

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