New York Foreclosed Homes – Knowing About the Law
In New York foreclosures, knowing the law makes a difference for anyone who wants to invest in this market. In fact for anyone wanting to invest in foreclosures in any state knowing the law is vital. The foreclosure law Nationwide follows pretty much the same footsteps, however from state to state and even from county to county it varies a little.
Smart investors make sure they know what they are in for when they enter into investing in New York foreclosed homes, or any other foreclosed homes for that matter. For starters in New York both judicial and non-judicial foreclosures are allowed. The primary instruments for security are the Deed of Trust and the mortgage an the timeline is typically 120 days although in New York I have seen foreclosures which can take 18 – 24 months to wrap up. There are no rights of redemption and deficiency judgments are allowed.
Now if all this sound like legal gobbledy-gook to you, it is not really, it is all quite simple. In a Judicial foreclosure the lender has to take the matter to court to complete all the processes which need to be put in place and in a non-judicial foreclosure they don’t. An independent trustee is appointed who may sell the house on auction if the home owner defaults on their mortgage repayments.
Primary instruments for security are the legal documentation which decrees how a loan is paid back to the lender and what happens if the borrower defaults. If the borrower has a mortgage then a Judicial foreclosure process is required, if the borrower has a Deed of Trust then a non-judicial process is generally followed, and if the deed of trust contains a power of sale clause the trustee may auction their property in the case of a default, without the owners’ permission.
Default judgments are judgments which allow the lender to recover any shortfall in the debt owed by the home owner after the sale of the property has taken place and rights of redemption is the legal recourse that a home owner may or may not be granted to recover their property after it has been sold on auction. Of course anyone granted rights of redemption would have to be able to come up with the money owed to the lender as well as all legal fees and other costs and in some instances this can be for a period of as little as 10 days after the sale of the property, it as much as 1 year after the sale of the property.
In New York no rights of redemption are given, therefore any investor in this state would not have to be concerned about an irate home owner paying back all the money he owes to the lender and coming down on him to reclaim his former property. These are just a few of the very basics of foreclosure law, but they must be well understood by anyone becoming an investor in New York foreclosed homes.
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September 25th, 2009 at 5:28 pm
[...] more commonly known are bank owned or real estate owned property. This means that the lender has foreclosed upon a property owner due to their failure to repay their mortgage loan and this is happening more [...]