It’s Called Involuntary Alienation… - Posted by Jack-NY
Posted by Jack-NY on June 25, 2000 at 10:51:50:
New York is a mortgage state. (Action)Nonpayment of a debt secured by real property. (Process) Foreclousure. (Property taken back by) Creditor.
Foreclosure in NYS. There are two types of foreclosure proceedings in New York, a judicial and a strict foreclosure. Strict foreclosure a rarely used; judicial foreclosure is the procedure followed in the majority of cases. In a judicial foreclosure, upon a borrower’s default the lender may accelerate the due date of all remaining payments. The lender’s attorney can then file a suit to foreclose the lien.
The property is ordered sold. A public sale is advertised and held and the real estate is sold to the highest bidder. The borrower has the right to redeem the property until the moment of the sale by producting full payment including back interest and the cost incurred in the foreclosure proceeding. In New York, however the defaulting borrower does not have the right to redeem the property after the foreclosure sale.
The purchaser of the foreclosed property receives a refee’s deed. The referee is appointed by the court and executes the deed by virtue of the authorization given by the court.
Deed in lieu of foreclosure: An alternative to foreclosure would be for the lender to accept a (deed in lieu of foreclosure) from the borrower. This is sometimes called a friendly foreclosure because it is by agreement rather than by civil action. The major disadvantage to this manner od default settlement is that the mortgagee takes the real estate subject to all junior liens, while foreclosure eliminates all such liens.
The foreclosure process in New York State is a long drawn out process, which could take years to complete. Once the lender takes ownership of the property you might as well forget about it, the lenders don’t want to know anything, or will advise you of the upcoming sale, which never takes place right away. In my experiance once the property belongs to the lender and a sale is forced, it’s not worth the time wasted in trying to purchase the property at the sale. The lenders usally are trying to sell at retail prices, or the property is bidded up so high near retail value, or at least the high end of the loan balance. There are better deals out there in my opinion then the time wasted tracking these foreclosures. You either purchase as a pre-foreclosure, or locate when in default and try to structure a deal. I have seen properties still vacant after three years.
Hope this helped…