If you live in New York, and are going through the foreclosure process, there are a number of terms you are going to come across. Today we’ll be talking about the Foreclosure Sale (or Foreclosure Auction) and what it means to you in your foreclosure case.
A foreclosure sale or foreclosure auction is the last step in a foreclosure proceeding before the property’s ownership is forced by law to be transferred. The foreclosure sale has 4 stages: the notice period; the auction; the closing; and post-closing.
The Notice of Sale is a one-page form that is mailed to you detailing the following information:
The Notice of Sale will also be sent to your lenders and their lawyers, your own foreclosure lawyer, and any other parties in interest or appearing in your foreclosure case.
There must also be a public announcement of the Foreclosure Sale in a local newspaper publication for four weeks as required by New York State laws. This information will also be available on the County Supreme Court’s website for potential bidders to review.
The same Referee appointed by the court to determine what you owed your lender will be in charge of conducting the auctioning of your property. This foreclosure sale is usually held at the Supreme Court courthouse or at the town hall for the town or village where the property is located. The auction can be held either inside or outside, depending on the weather or priorities (like pandemic limitations).
You can find the rules and expectations for Long Island foreclosure auctions here: Nassau County, Suffolk County, Queens County, Kings County (Brooklyn).
The closing on the property needs to take place 30 days after the auction. However, the highest bidder often gets time extensions from the Referee. If the high bidder is unwilling to close or unable to obtain the balance needed to close the sale, their bid is forfeited, and the sale is voided. When this happens, a new auction needs to be scheduled.
Once your property has been successfully auctioned off, the Referee will issue a report of the sale.
If the auction did not generate enough money to pay off all your debt, your lenders may try to get you to cover the balance.
If the auction brought in more money than you owed, the excess will be deposited with the court, and you will be able to claim it with what’s called a Surplus Monies Proceeding.
The final sale does not legally require you to immediately leave. Your foreclosure lawyer may offer an eviction defense in landlord/tenant court to give you more time to move. Alternatively, your foreclosure lawyer can negotiate an agreement to peacefully move out by a certain date through a cash for keys agreement.
Even after a foreclosure sale, you still have rights and options that can help your situation. There could be jurisdiction and other possible material procedural defects that, if brought to the attention of the court, in rare cases may overturn and vacate the sale. For more information, reach out to New York foreclosure lawyer Ronald Weiss immediately. After a free consultation, he can tell you what you need to know about fighting a foreclosure lawsuit and help you get your case started. Call 631-271-3737 and take the first step to a fresh start.