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Foreclosure procedure in NY state who is entitled to any surplus from the sale

Asked over 3 years ago - Schenectady, NY

Once the house is forecloured on will the preivous propery owner be given a period of time to vacate and removve possesions or is house locked upon sale and all possesions are lost?

If the property is sold for more than what is owed the lender, what happens to the remaining money. eg 24,000 owed in foreclosure, house auction of at 100,000. what happens with the remaining 75,000. does the bank get to keep that?

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Attorney answers (2)

Jay Stuart Fleischman

Reputation Level 9

Answered over 3 years ago. Chapter 7 Bankruptcy Attorney in New York, NY.

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Once the house is foreclosed upon, the prior owner is treated under NY law as a month-to-month tenant. The new owner will be required to begin an eviction proceeding against the former owner, with that case being brought in landlord-tenant court.

If the property is sold for more than what is owed to the lender, the excess amount is held by the referee pending a surplus money proceeding. The former owner must commence a surplus money proceeding to claim the excess funds in order to have them turned over.

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John M. Kaman

Reputation Level 20

Answered over 3 years ago. Criminal Defense Attorney in San Francisco, CA.

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If the house is sold for $100,000 but the debt owed to the bank is only $75,000 the additional $25,000 goes to the former homeowner.

If the previous owner remains in possession after the foreclosure sale the new owner will have to initiate unlawful detainer (eviction) proceedings against the occupant to get them out.

www.kamanlaw.com

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