Real Property Mortgage Foreclosure Timetable
The following timetable is representative of the average processing time for the handling of a default Foreclosure in the State of New York. Slight procedural differences between various counties in New York are deemed not meaningful and are, therefore, not shown. However, certain counties are able to process foreclosure cases more quickly than others and this must be taken into account.
It must be understood that court delays can be encountered even in an uncontested Foreclosure. Of course, the timetable does not reflect delays caused by the filing of a Bankruptcy, mandatory settlement conferences or due to the Foreclosure being contested.
Uncontested New York Foreclosure
|Day 1:||If primary residence, Lender must send a statutory 90-day Notice to Cure to borrower, together with required attachments, and must register with the NYS Department of Banking.|
|Day 60:||Lender must sent a 30-day default letter to borrower, if required by loan documents. Notice and manner of delivery must conform to loan documents.|
|Day 91:||Order mortgage foreclosure search, open file, review instructions and loan documents; enter into computer and assign file number.|
|Day 100:||Review search. Prepare and file Summons, Complaint and Lis Pendens. Send out for service of process. Issue title claim letters, if necessary.|
|Day 130:||Receipt of Answers, if any.|
|Day 130-180:||Review file to see if all services have been made. Submit Publication Order and Order appointing Guardian ad Litem and Military Attorney, if necessary, to the Court for signature. If publication is unnecessary, diary for 21 days after last service for the appointment of a Referee to Compute, if personal service has been made; and 30 days after the filing of the affidavits of substituted service with the County Clerk. If file “sub-prime”, “high-cost” or primary residence, submit new RJI requesting mandatory conference. All Court actions stayed during Settlement Conferences which may take many months to conclude.|
|Day 180:||If no one answers(assuming not sub-prime or high-cost), and settlement is not possible, submit ex parte application to the Court for the appointment of a Referee to compute; and at the same time, forward affidavit of substituted service with the County Clerk. Prepare and submit affidavit of amount due for client.|
|Day 210:||If Order appointing Referee to Compute has been signed, and completed affidavit of the amount due is received from your office, prepare Referee’s Report of Computation, and mail to Referee for examination and signature.|
|Day 240:||Upon receipt of properly executed Referee’s Report, ex parte Judgment prepared and, if necessary, military affidavits requested from the Process Server. If military affidavits are not required, Judgment can be submitted immediately, and if military affidavits are required, they must be obtained from the Process Server, prior to the submission of the Judgment.|
|Day 270:||Upon Judgment being entered, Sale is arranged. Property must be advertised for sale for three (3) successive weeks, and is sold on the fourth week. The date of sale is arranged with the Referee, who has been appointed by the Court, and who conducts the Foreclosure Sale and conveys title.|
|Bidding||Plaintiff may set the bid price at whatever it deems proper, however, it may only recover whatever the judgement calls for. Therefore, the plaintiff is advised that it should not bid over the judgment amount (inclusive of fees, costs, etc.) In the event plaintiff is the successful bidder at auction, and that bid is over the judgement amount, it will be required to deposit any surplus funds with the Court.|
|Day 360:||Sale held. If no Third Party Bidder, and the property is vacant, title can immediately be conveyed to HUD, VA, or other designated Grantee, and title policy requested. If property is sold to third party, Terms of Sale signed by the Referee provides closing within thirty (30) days after Sale, or at such reasonable time thereafter. Upon Closing, bill submitted for balance of fee and disbursements, and if Third Party Sale, copy of Report of Sale furnished with breakdown of amounts disbursed.|
After Sale, If Deficiency Is Sought
Within 90 days from delivery of the deed from the referee to purchaser, a motion to confirm the sale must be made, and the party seeking the deficiency must file a motion in the action for leave to enter a deficiency judgment, upon personal service to the party against whom such judgment is sought. The moving party must provide proof of the property value as of the date of auction (by way of a sworn appraisal) to determine the deficiency amount.