New York foreclosures saw a significant decline in recent months after a judge released a ruling compelling bank attorneys to sign foreclosure documents signifying that they have personally checked said documents.
This ensures that the homes that are going into foreclosure are safe for purchase.
New York Foreclosure Laws The laws governing New York foreclosures have been set to protect the interests of all the parties involved.
There are two ways by which a foreclosure takes place in the state, either by judicial or non-judicial foreclosure.
More lenders and mortgage providers opt for the judicial manner of foreclosure as it is less complicated than a non-judicial foreclosure, which tends to drag on for a long period of time.
The Judicial Procedure The process is only set in motion when a borrower reneges on their mortgage for a consecutive number of months.
The lender files a lawsuit in the Supreme Court of the county where the home is situated.
A copy of the documents of the lawsuit is sent to the borrower as well as a lis pendens notice indicating that a lawsuit has been filed, which has the effect of affecting the title of a property.
There are timelines on when the borrower has to respond to these filings, and if they fail to meet these dates, the lender has the right to push for the proceedings to commence.
Once the Supreme Court decides that the borrower indeed defaulted on their mortgage, considering New York foreclosure laws, then the foreclosure judgment is awarded to the lender.
One of the effects of this judgment is that the ownership of the property is handed over to the lender.
In order for the lender to recoup their losses from the mortgage default, they will attempt to sell the property in the market.
The home can be sold off in a public auction, and when it does not sell, it is then turned over to property managers to be sold in a private listing.
The proceeds from the sale of New York foreclosures would have to be distributed according to the ruling of the Supreme Court.