The state of New York protects mortgage banks and lenders with foreclosure sales. When a home owner fails to pay on the mortgage loan, the lender sells the property at a public auction to recoup losses on the loan. Potential buyers can find New York City foreclosure listings to locate foreclosures throughout the city. They can then bid on foreclosed homes in New York City at the public auctions.
Step 1:
Find New York City foreclosure listings. Lenders must post these listings so members of the public can show up and compete to buy the foreclosures. Look in New York City newspapers to look for foreclosure notices. The Supreme Court has jurisdiction over foreclosure actions. Thus, you can look for foreclosure listings by contacting the Supreme Court clerk’s offices in the New York City area. Those offices will at least give you information on how best to find foreclosed properties in that jurisdiction.
Step 2:
Look at individual New York City foreclosure notices to find the date, time and place of the various auctions held in the area. You will also need to know how much is due on a property before deciding whether to make a bid. Lenders routinely start the bidding at that amount, so you will need to bid more if you want to purchase foreclosed homes in New York City.
Step 3:
Come up with a maximum bid on each property you are thinking of buying. To do this, you need a figure between the amount due and the fair market value of the foreclosed property. Estimating a fair market value is far from easy. You may need the services of an real estate appraiser or agent to help in this task. Of course, you need to bid below that amount to get a good deal on a New York City foreclosure.
Step 4:
After compiling your list of foreclosed properties and maximum bids, you then need a payment plan. The plan depends on the seller’s own policies. Some require cash only, while others may allow different methods of payment. Some lenders may want you to pay the full amount of the bid on the day of the sale. Others may have a more lenient payment installment plan, but this would only be a few days or weeks, not years like buying a home with a loan.
Step 5:
Pay the seller once you win a bid to buy a New York City foreclosed property. Follow the instructions exactly to avoid having your bid voided.
Step 6:
Get a New York property deed. When you buy foreclosures or any other real property in New York City, you need to follow New York recording laws. Go to the recorder’s office in the county where your new New York City foreclosed property is located. File the deed with that office to protect your interest in the foreclosure.
Sources:
New York Legislature: Conveyance (Laws on Getting a Deed for Your New York City Foreclosure
