New York foreclosure laws provides Judicial and Non-Judicial proceedings to the lenders.

According to New York foreclosure laws the state provides judicial and non-judicial proceedings, but on the state, as the non-judicial foreclosure process is very complicated, it is not used often.

In the Judicial foreclosure process, as usual the lender must initially file a case in the court. This process begins by enclosing summons and a complaint. Then it is sent to the borrower, ordering him to come to court and answer the complaint. The complaint is a lawsuit that describes the lenders' basic reason for foreclosing the property. A notice of lis pendens is filed. The lis pendens is a notice, stating that, the complaint is pending and the effect will be the loss of the foreclosed property. Within 20 days the borrower should answer the complaint, if not, there will be a motion for summary judgment. Following the summary judgment, the court appoints a mediator to find out the amount to be paid and suggests in what way the property should be sold.

If the borrower appears and defends against the lawsuit, then the court can verify the merits of the defense. And, if the lender wins, then a verdict of foreclosure and sale of the foreclosed homes will be granted. Once the mediator issues the report, the court validates the report and the sentence directing the sale of the foreclosed hud homes will be enrolled.

Foreclosure Procedure

The sale of the foreclosed property is advertised in the region's newspaper for 4 weeks. The sale occurs by the foreclosure auction and the highest bidder can take the house foreclosed. The lender also gets the chance to bid in the auction.

The officer who conducts the sale has to immediately execute a legal document to the purchaser. The officer must also pay, out of the proceeds, the amount of the debt, including interest and costs, to the lender and then obtain a receipt for the payment from the lender. In addition to all the above the officer should file a report of the sale and the sale deed with the clerk of the court within 30 days.

Deficiency Judgment

If the lender is provided with insufficient funds then he can issue a deficiency judgment against the borrower. The timing for the deficiency judgment is 90 days, after the foreclosure auction.

Redemption Rights

No redemption right is offered to the borrower.