New York Foreclosure Homes and More Basics for Sellers and Buyers

One thing is for certain, the delay in the courtowner and gain enough information to determine the
system for processing New York foreclosure homesbuying strategy.
can help some parties involved considerably. TheNot all homes facing foreclosure will be attractive
anxious and likely depressed seller of his family homepropositions. Not all home owners facing the loss of
and the nervous yet determined home buyer cantheir property and lifestyle will be motivated to
both take advantage of the long timeline from Lisactively market their home for sale. Or discuss their
Pendens to the day of the auction sale. The processcircumstances freely. Faced with high inventories of
for inner city property foreclosures typically can lastunsold traditional housing all around, the owner, seeing
as long as 445 days or around 15 months, outsidea sale before the auction as a final chance to avoid
the city limits just a little less than 12 months. This isforeclosure, needs time to sell, even at a discounted
a general guideline only, every foreclosure is different,price.
and this estimate assumes no delays, no contestedBasic information to be evaluated once a buyer
action. Lenders non judicial foreclosures, a fasterknows a particular property is in pre foreclosure must
process, are seldom used in New York.come from the search of title. Foreclosure actions
When no workout plan seems feasible to the lender,can be brought by any mortgage holder, and until the
and the borrower is 90 days overdue with loanpotential buyer knows exactly how much is owed to
payments, the lender will request an attorney toall lien holders he cannot calculate the existing equity.
initiate the foreclosure and demand that theRanking of the liens plays its part in the buyer's
borrower hand over the collateral backing the loan. Astrategy, should it be apparent there is no equity, or
Lis Pendens is a public record and the starting gun asthe loans together are more than what the property
far as would be investors in pre foreclosure homeswould bring at the auction, the buyer can try to
are concerned. Whether the buyer is experiencednegotiate a discounted settlement with the junior lien
and acting on his own, or seeking to cover the bestholders, lowest ranked first, in order to create equity
in opportunities to buy well through a real estatefor himself. All this takes time. Here in New York, the
broker, now is the time he uses to communicate hishome owner has a fighting chance to resolve most
interest, establish a level of trust with the homeof his financial difficulties with a timely sale.