In New York State a foreclosure is a legal action in which the mortgage holder obtains title to a property due to a borrower defaulting on a loan. Once a judgment is obtained, the foreclosed property is auctioned off. A deed, known as a “Referee Deed,” is then created, which transfers title of the real property to the highest bidder.
If the owner or tenant continues to reside in the property once it has been foreclosed on and title has been successfully transferred to the new owner, then that owner must evict the occupant through legal action. This is accomplished under New York Real Property Actions and Procedures Law § 713. In New York State, this provides grounds to evict an individual where no landlord – tenant relationship exists. In addition, the new owner must present a certified copy of the deed to the person being evicted from the property.
Procedurally, an action must be commenced in a court of appropriate jurisdiction, leading to the issuance of a warrant of eviction even though a landlord-tenant relationship does not exist. An alternative is to apply for a writ of assistance in the New York State Supreme Court. A writ of assistance is a legal document that operates like a warrant of eviction.
Another option is to enter into a rental agreement with the occupant to allow him or her to continue to reside in the foreclosed property. By entering into a written agreement with the individual, rights and responsibilities of the parties are subject to R.P.A.P.L. § 712. This allows for a special proceeding in court. Upon the expiration of the lease agreement, a holdover proceeding may be brought if the individual fails to leave the foreclosed property.
Navigating the complexities of New York real estate laws and guidelines can be challenging. A New York residential real estate attorney can assist you in a foreclosure or eviction matter, and help revise the language of a lease agreement to make sure that you remain compliant with the law. The lawyers at Blodnick, Fazio & Associates P.C. have experience in the preparation and review of real estate contracts and have represented both buyers and sellers in residential and commercial real estate transactions. For a free consultation, contact the firm at (516) 280-7105.