New York provides protection to mortgage banks and lenders by allowing foreclosure. When a home owner/mortgagor defaults on the home loan provided by a lender, the lender may foreclose and sell the property at a public auction. Prospective buyers can find county foreclosure listings that show upcoming foreclosure properties for sale. They can use the listings to prepare for bidding and buying New York foreclosures at the public auctions.
Find New York foreclosure listings. The lender must give public notice of foreclosure sales after a judge approves the sale of a property. Check newspapers to look for foreclosure notices. The Supreme Court has jurisdiction over foreclosure actions in New York. If you need information on foreclosures in a particular area, you can also call or visit the local Supreme Court to hunt down foreclosure listings.
Look at the foreclosure notices to determine foreclosure addresses and auctions dates, times and locations. You should also use listings to help you determine which properties fall within your bidding range. Foreclosure notices state the amount due on the foreclosed property. This is generally going to be the minimum bid on a property because the bank will bid that amount to buy and resell it later if no other buyer bids a higher price.
You should also try to check out individual New York foreclosures to assess their fair market value. You do not have a right to inspect the property, but neighbors and area real estate professionals might be able to give you enough information to estimate a market value. You can then decide on a maximum bid on New York foreclosed homes that you want to buy.
Use listings to figure out the proper bidding procedure. For example, if the notice says you must pay your entire bid on the day you buy a foreclosed home at the New York auction, then you need to fully prepare for that scenario. When buying New York foreclosed properties, you must follow the exact procedure for bidding and paying. Otherwise, the seller can void your bid and the previous auction and run a second auction to sell the foreclosure.
Appear at the proper place and time and bid on the foreclosed real estate you want to buy. Complete the sale by following the payment procedures.
Obtain a deed from the seller. A deed conveys the property to you as the owner. This property deed is not going to protect your rights, though, until you file it. Go to the property recording office in the New York county where the foreclosed property is located. This is how you give notice to the public that you bought the property.
New York Legislature: Conveyance (After New York Foreclosure Sale)