This section of the website tells you what to do in a New York State Supreme Court case after you get a foreclosure Summons and Complaint. As a result, many lenders either simply ink an agreement with the homeowner to take the property back (called a deed-in-lieu of foreclosure – see No. 4 in 5 Ways You Can Stop the Foreclosure Process) or buy it back themselves at the auction. If the court decides in favor of the lender, it will enter a judgment ordering the sale of your home to satisfy the debt.
Today, numerous state laws and regulations govern foreclosure to protect both the mortgagor and the holder of the mortgage from unfairness and fraud. People : To enhance their knowledge on foreclosure properties, related acts, procedures involved, latest developments, and dispel myths about foreclosure properties. Homes in any stage of foreclosure may require significant repairs just to make them inhabitable.
This website is not a comprehensive treatment of the subject and is not a substitute for advice from an attorney. If an Order for Conduct of Sale is issued by a court, you will have to move out by the Possession Date stated in the order. You have nothing to lose (and everything to gain) by working with your mortgage company to avoid foreclosure. A deed in lieu of foreclosure is also used when the borrower faces foreclosure.
The other 28 states – including Arizona, California, Georgia and Texas – primarily use non-judicial foreclosure, also called the power of sale , which tends to be faster and does not go through the courts unless the homeowner sues the lender. If you do not pay what you owe, a Notice of Sale is recorded (at least 90 days after the Notice of Default is recorded). Non-judicial foreclosure auctions are often more expedient, though they may be subject to judicial review to ensure the legality of the proceedings. Strict foreclosure was the original method of foreclosure, but today it is only available in New Hampshire and Vermont.
Conventional loans also typically have requirements regarding the condition of the property and might not approve your loan without certain repair contingencies, creating a catch-22 since foreclosures are commonly required to be sold as-is. We work with local real estate agents to review similar listings for price comparisons, assess the property condition, and set an accurate price.