Navigating New York’s Sheriff’s Sales: Your Complete Guide to the 2024 Foreclosure Auction Process

For homeowners facing foreclosure in New York, understanding the sheriff’s sale process is crucial to protecting your rights and exploring all available options. In a foreclosure action, the judgment of foreclosure directs that the mortgaged premises be sold at auction to pay the sum due to the foreclosing plaintiff, with the judgment usually stating that the sheriff or a referee must sell the mortgaged property within ninety days.

The Timeline: What to Expect

The foreclosure sale is usually scheduled to hold about four months after the court enters judgment against the borrower. However, New York’s foreclosure process is notably lengthy, with foreclosures processed through the court system for about 445 days, making New York the state with the longest foreclosure timeline in the US.

Before the auction can take place, the notice of sale must be published in a newspaper once a week for at least four weeks before the sale. If a judge signs the judgement of foreclosure sale and an auction date has been set, the lender must publish a notice of sale in a newspaper once a week for four weeks before the auction date. You are allowed to remain in your home until the date of the auction or until the title of the property is transferred to a new owner.

How Sheriff’s Sales Work

Foreclosure sales are conducted through a public auction, often at the county courthouse, and the property is sold to the highest bidder. Foreclosure auctions take place on Wednesday afternoons at 2:00 p.m. on the Portico at 60 Centre Street for Manhattan properties, while other counties have their own designated locations and schedules.

Sheriff’s sales are public auctions, so anyone can bid. However, it is generally required that a bidder present a bank check for 10% of the bid amount as a deposit in order to bid on a property. The successful bidder will get 30 days within which time to close. It might not be enough time to apply for a mortgage loan, however.

Critical Rights and Limitations for Homeowners

One of the most important aspects homeowners must understand is New York’s stance on redemption rights. Unlike many other judicial foreclosure states, New York law doesn’t provide a redemption period for foreclosed homeowners after the sale. The relevant New York statute requires conveyance of the home to the purchaser after the foreclosure sale.

In New York, you can redeem up until the sale of the property. But after the home is sold pursuant to a judgment of sale, you no longer have a right of redemption. This means that New York State does not allow homeowners to repurchase or “redeem” their homes after the sale date, in what is typically called the “statutory right of redemption,” like in other states.

Understanding the Costs and Consequences

In New York, foreclosure costs range from $5,000 to $10,000. This price range is much higher than that in other states in the US besides New Jersey. The financial impact extends beyond immediate costs, as a foreclosure can lead to a decrease of approximately 100 points or more in the credit score. The mark of foreclosure stays steady on the credit report for seven years.

After the Foreclosure Sale occurs, borrowers in New York do not have the right of redemption after the foreclosure sale. This means they cannot reclaim their property once it has been sold. Additionally, the borrower may be served with summons to appear in an action for a deficiency judgment brought against them by the lender. In this situation, the court will order them to pay the balance of the mortgage debt that hasn’t been satisfied by the proceeds of the foreclosure sale.

Available Protections and Alternatives

Despite the challenging circumstances, New York has some of the most borrower-friendly foreclosure laws in the country, offering protections throughout the foreclosure process. New York offers various programs and protections for homeowners facing foreclosure. Some of these are mandatory settlement conferences and the possibility of loan modifications or other loss mitigation options.

New York law requires the lender or servicer to send a notice to the borrower 90 days before starting the foreclosure. This provides homeowners with crucial time to explore alternatives such as loan modifications, short sales, or other workout arrangements.

If you’re facing a foreclosure, filing for bankruptcy might help. If a foreclosure sale is scheduled to occur in the next day or so, the best way to stop the sale immediately is by filing for bankruptcy. Once you file for bankruptcy, something called an “automatic stay” goes into effect.

Professional Legal Assistance

Given the complexity and high stakes involved in foreclosure proceedings, seeking experienced legal counsel is essential. The Law Offices of Ronald D. Weiss, PC, located in Long Island, has been providing expert bankruptcy, foreclosure defense, and debt negotiation services since 1993. The Law Offices of Ronald D. Weiss, PC have been supplying expert bankruptcy, foreclosure defense, and debt negotiation services since 1993. We offer practical, compassionate solutions customized to each client’s financial situation. With over 30 legal professionals on our team, we have the resources to handle your important legal matter.

In the greater New York area we serve the following boroughs and counties: Queens, Brooklyn, Staten Island, Manhattan, Bronx, and Westchester, providing comprehensive foreclosure defense and bankruptcy services to homeowners throughout the region.

Taking Action

The sheriff’s sale represents a critical juncture in the foreclosure process, but it’s not necessarily the end of the road. Understanding your rights, the timeline, and available alternatives can help you make informed decisions about your home and financial future. New York has one of the longest timelines in the country, so you should have plenty of time to explore ways to avoid foreclosure.

If you’re facing foreclosure or have concerns about an upcoming sheriff’s sale, don’t wait until the last minute to seek help. Getting initial information and advice is free. Our approach is personalized to your specific situation and goals. The earlier you act, the more options you’ll have available to protect your home and financial well-being.