When a homeowner stops paying their mortgage, the bank or lender can take the home back through a legal process. This is called foreclosure. In New York, this happens through the courts. That means it takes time, and there are steps that must be followed. For people looking to buy a home at a lower price, these properties can offer a chance to get a deal. But it’s not as easy as buying a regular home. You’ll need to know what to expect.
Richard H. Cole
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Thomas F. Hewner
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Donna L. Haslinger
Partner
Vivian P. Roche'
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Keith R. Rosso
Attorney
Tasha D. Frazie
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Tyler I. Wood
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Marc A. Cangé
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Teresa M. Cappiello
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Why Some Homes Get Foreclosed
Life can take unexpected turns. Sometimes a person loses their job or faces a big medical bill. If they can’t keep up with mortgage payments, the lender starts a case in court. That case can last for many months or even years. During that time, the homeowner may still be living in the house. When the case is over, and the court agrees with the lender, the home is taken and listed for sale. This is where you come in as a buyer.
How to Find These Homes in New York
In New York, foreclosed homes are often sold through auctions. These are run by the county or sometimes by private companies. You can find listings by checking the local county clerk’s office, legal newspapers, or court websites. Real estate agents who know this market can also help. Some homes are still lived in. Some are empty. Some may need repairs. It’s smart to see the home before you buy, but not all auctions allow that.
Steps to Buying a Foreclosed Home
The first step is doing your homework. This means learning about the home, checking if there are other debts tied to it, and making sure you’re ready with the money. These sales often require full payment very fast, sometimes within just a few days. There’s no time to wait for a regular mortgage to come through.
Next, attend the auction. If you win the bid, the court will give you a paper called a Referee’s Deed. This shows that you now own the property. But be careful. You may still be responsible for old property taxes, unpaid water bills, or other debts. These don’t always go away when you buy the house.
What to Watch Out For
Buying a foreclosed home might sound like a deal, but there are risks. You may not get to see inside the house. The people living there may not want to leave. You could be stuck dealing with legal steps to get them out. The home may also need work. Roofs, pipes, and heating systems may be broken or missing. You’ll have to fix all of that on your own.
And don’t forget—some homes still have legal issues tied to them. These are called liens. That means someone else claims the homeowner owes them money, and they want to get paid even after the house is sold. If you buy the house and those liens weren’t cleared, you might be stuck with the bill.
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Why Legal Help Matters
This process involves courts, rules, deadlines, and paperwork. A missed step can cost you time and money. That’s why working with a lawyer who understands New York foreclosure law can protect you. They can help you check for liens, read court documents, and guide you through the sale. Buying without help can leave you with more trouble than you expected.
A Simple Plan to Move Forward
If you’re thinking about buying a foreclosed home, start by speaking with a real estate lawyer. Make sure you understand what you’re buying. Visit the home if possible. Check for other costs. Be ready to pay quickly. And have someone help you read the sale terms. These few steps can keep you safe.
What Happens If You Get the Home
Once you own the home, you’ll need to handle any problems left behind. If someone is still living there, you may need to start a court case to remove them. You’ll also need to transfer utilities, start repairs, and bring the home up to code. In the end, if all goes well, you’ll own a home at a price that might be lower than others nearby.
What Makes New York Different from Other States
Buying a foreclosed home is different in every state, and New York is one of the few states that uses what’s called a judicial foreclosure process. That means every foreclosure must go through the court system. This adds time to the process, but it also adds layers of protection for everyone involved. For buyers, this means there is a public record of the case, and you can track the details of each property’s legal path. That can give you helpful insight before making a decision.
In New York, the court appoints a referee to oversee the auction process. The referee manages the sale and issues the deed once a bid is accepted. This person plays a key role, and any buyer must follow the rules set by the referee. If you don’t know those rules, you could lose your chance to buy—or worse, forfeit your deposit.
Understanding the Terms of Sale
Each auction comes with what’s called “terms of sale.” These are written rules that explain how the auction will happen, how payment must be made, and what happens afterward. Some terms require a 10 percent deposit on the day of the sale. Others may allow only certified checks. There may also be rules about how quickly the rest of the money must be paid.
It’s not just about winning the auction. You have to follow through fast. If you fail to meet the payment deadline, the court can cancel the sale and keep your deposit. That’s why it’s wise to have your finances lined up before you show up to bid.
How to Research Before You Buy
You wouldn’t buy a car without knowing if the engine works. The same should go for a house. Before placing a bid on a foreclosed home, try to learn everything you can. Get the address from the auction notice and search online for property tax records. Look for any past building violations or code enforcement actions. These can be clues about hidden problems.
Check the court case too. You can look up the foreclosure case by the index number listed in the notice. This might show if the case is near the end or if there are delays. You can also see who else might be claiming an interest in the property. That helps you avoid surprises after the sale.
Why This Matters Now
With more homes going through foreclosure in New York, more buyers are looking at this market. It can be a way to buy a home when prices are high elsewhere. But you have to know what you’re doing. Each home has a story. Make sure you learn that story before you buy.
How to Get Help Today
If you’re thinking about buying a foreclosed property in New York and want to do it the right way, the team at Cole, Sorrentino, Hurley, Hewner & Gambino, P.C. is ready to help. We can guide you through the legal steps, protect your money, and help you understand the risks. Call us today and let’s talk about how to make this work for you.