New York Foreclosures for Sale –The Law and a Short Sale

In New York foreclosures for sale it is important to note that although non-judicial foreclosures are allowed they are rarely if never used.

In New York foreclosures for sale it is important to note that although non-judicial foreclosures are allowed they are rarely if never used. And although according to the law the timeframe for foreclosures is 120 days this also never happens it is certainly more like 12 – 19 months and even longer in many instances.

The lender is compelled to sue the borrower in a court of law using the Judicial foreclosure process and New York is a big state, the wheels of justice turn very slowly. Once a judgment of foreclosure has been obtained a referee is appointed to determine how the property should be sold and at what price. It is the period between the lis pendens being served and the actual court action which takes a very short while, generally about 20 day. However once the summary judgment for foreclosure has been granted and the referee files their report, the court will confirm the report and enter a judgment of sale and this is the period in the process which takes such a long time to process.

The fact that it takes so long to acquire a judgment of sale in a New York foreclosure does grant the home owner some breathing space to sell the property. However as a summary judgment of foreclosure has been issued, they would only be able to do this with the permission of the lender in the short sale. A home owner who is in default and has a foreclosure pending cannot of his own volition sell the property.

The short sale has the effect of placing the lender, the borrower and the potential investor in a win-win situation. In this way the home owner will not have to endure the full foreclosure process, the lender will get as much money as they possibly can out of the debt owed to them, without having to endure months of financial loss, and the property investor generally gets a good bargain. Another added benefit of the short sale is that the foreclosure process is stopped once this has taken place and home owner walks away with a credit record which is relatively in tact. In the case of a foreclosure being completed to its fullest extend the credit record of the home owner is irretrievably damaged for at least the next three years.

Short sales are not governed by any specific laws or statutes; they are merely well accepted business practices in this time when foreclosures are on an ever steady increase. For any new investor, new home buyer or first time home buyer who would like to venture into the foreclosure market to purchase a property. Never overlook the possibilities of a short sale, they can be extremely promising, and the beauty of it is, it’s somehow humanitarian as well, it helps the home owner to save something of their credit record, and sometimes even allows them to walk away with a little money in their pocket.

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Foreclosures for Sale Nov 3rd, 2009

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