How to Buy New York Foreclosures

The state of New York generally pursues a judicial process of mortgage foreclosure. After the owner of the property receives a notice of default, it can take more than four months (and no less), before it is put up for sale at a public auction of foreclosure sale.

When a foreclosure property fails to sell at the public foreclosure auction sale, it becomes Real Estate Owned. Properties in foreclosure should ideally be bought during the preforeclosure phase as they are generally cheaper then.

In New York, a deficiency judgment is made available to lenders if foreclosure properties sell for lesser than the balance on the primary mortgage amount at the public foreclosure auction sale.

A lender has to request for a deficiency judgment within a span of ninety days once a confirmed foreclosure sale takes place.