Can I get my home back if I lose it to foreclosure in New York?

You cannot redeem (repurchase) your house after a foreclosure sale in New York, but you may redeem before the sale.

Question

My parents passed away a few years ago, and I inherited their Syracuse, New York house. My then-boyfriend and I purchased the home and moved in. We eventually split up, and I couldn’t keep up with the payments on my wage alone. The lender initiated a foreclosure, but the home has not yet been sold. I just took a new job that pays much more than my previous one. I don’t want to lose the home since it was very important to my parents. Can I get it back if it is foreclosed on?

Answer

No, you do not have the right to buy or “redeem” the property after it has been sold. Some states allow foreclosed homeowners to repurchase their house following the foreclosure sale, known as the “redemption period,” however New York is not one of them.

By paying the loan sum in full, you may redeem the property before the foreclosure auction. An “equitable right of redemption” is the right to pay off the debt and halt the sale. Alternatively, you may be able to reach an agreement with the lender prior to the sale that allows you to maintain the property. For example, the lender may agree to a loan modification, or you may be able to catch up on your payments and restore the loan. However, you must arrange for one of these choices before to the transaction.

In a New York foreclosure, you may redeem your home before the sale.

In New York, foreclosures are “judicial,” which means the lender must file a complaint in court to foreclose. The court will file a judgment and order the house sold to settle the debt as part of the foreclosure procedure.

In New York, you may redeem up until the property is sold. However, if the residence is sold according to a sale judgment, you no longer have a right of redemption. 1352 of the New York Real Property Act).

How Much Will It Cost to Redeem the House Prior to the Sale?

To redeem the house prior to the sale, you must pay the whole mortgage obligation, including charges and interest.

Call the foreclosing lender’s attorney to learn the process and the precise amount required to redeem your house before the sale. You could also consider hiring a New York attorney to help you through the procedure.

Other Options for Preventing a Foreclosure Sale

Also, other than redeeming the property, you may have other choices for rescuing your house, albeit (again) you must do so before the sale. You may, for example, revive the mortgage loan by paying off the past-due sums. You may reinstate under New York law at any point before the sale. However, completing a reinstatement before the final verdict is an excellent idea since the court will then dismiss the foreclosure. The sale will be stopped if you reinstate after the judgment but before the sale (postponed). The disadvantage? If you subsequently fail, the court may order that the judgment be enforced, and the lender can sell the home.

Another alternative is to work out a deal with the lender that will enable you to remain in the house, such as a mortgage modification or repayment plan. (See Do’s and Don’ts for Getting a Loan Modification to discover what to do—and what not to do—during the loan modification process.)

Where Can I Find Redemption Laws in New York?

In New York, refer to Article 13 of the Real Property Actions & Proceedings legislation to locate the statute that explains your ability to redeem the residence. Statutes change, so double-checking is usually a good idea. The way courts and other organizations interpret and implement the law might also shift. Some restrictions may even differ across states. These are just a few of the reasons why you should visit an attorney if you are facing foreclosure.