Real Estate investment Professionals

What is “Foreclosure”? What is commonly called a “foreclosure” is a lawsuit that the mortgage holder files against a homeowner in the supreme court where the property is located. The mortgage holder is usually a bank or finance company. New York is a judicial foreclosure state, which means that the lender has to sue the borrower in order to enforce their rights under the mortgage and note. If the lender wins the lawsuit, it obtains a judgment from the court, which allows the lender to sell the property at an auction. The money received from the sale is used to repay the debt. Foreclosure begins when the lawsuit is filed. A homeowner is considered “in foreclosure” until a judgment is made by the court.   If you do not know the exact stage of fore‐ closure you are in, you can find out from the supreme court in the county where the lawsuit was filed. You need to find the “docket sheet” to find out the status of your foreclosure. To find your case, have the complaint or other court paper that shows the “index number” (usually at the top right), or search by name. You may be able to access docket sheets online, depending on the county in which the foreclosure was filed. You can also go to the clerk’s office in the local supreme court and ask for a docket sheet that shows all actions taken in the court case so far.

Realty Direct NY Investors Group

Foreclosure 411