What are Lis Pendens?

A Lis Pendens is a notice filed with the court indicating that a mortgage foreclosure action is pending against a property. It details the property section, block and lot, as well as the names of the Plaintiff (bank or mortgage providor) and Defendant (mortgagor or borrower).

What is Pre-Foreclosure?

Pre-Foreclosure is the period between when a Lis Pendens is filed and
when the property goes up for auction.

How do I purchase a property in the different stages of foreclosure?

When a property is in pre-foreclosure you may contact the owner and pursue a purchase before the property goes up for auction. (Link to foreclosure overview)

You may also approach one or several of the lending banks and offer to purchase the note on the property (Link to Using our Data).

If the default on a property is not resolved in pre-foreclosure you may bid to purchase the property at public auction. (Link to foreclosure overview).

Can I view the inside of a property in foreclosure?

You cannot view the inside of a property without the owner’s consent. You may contact the owner and request to see the interior of the property, but such access is granted only at the owner’s discretion.

What occurs at a foreclosure auction sale?

The attorney for the bank and the referee are present. The referee reads
aloud the terms of sale. The referee will open the bidding at the price set by the foreclosing party. If nobody bids, the bank assumes title of the property. In this case the property is referred to as an “REO”, Real Estate Owned by the Bank. If only one person bids above the bank’s set upset price, he or she gets the property. The successful bidder signs a memorandum of sale at the conclusion of the auction.

What price will the auction open at?

The foreclosing party sets the opening price. It may be as low as $1.00. Although this amount is not required to reflect the fair market value or the amount owed on the property, generally the foreclosing party is only interested in obtaining the amount owed and will increase the bidding to that amount.

How much is the foreclosing party looking to get?

Generally, the foreclosing party is only interested in conducting a fair and proper sale and obtaining the amount owed pursuant to its judgment of foreclosure.

What if the bidder exceeds the amount owed?

Any monies obtained in excess of the amount owed will be the subject of
hearings to determine the appropriate beneficiary.

Why would the bidding exceed the amount owed?

Competitive bidding may force the price above what is owed on the judgment.

What funds do I need in order to bid on a property?
A: You need to be able to pay 10% of the winning bid price at the time of the auction. You must be able to pay the remaining balance within thirty (30) days of the auction date.

What form of payment is acceptable for the 10% down payment?

Personal checks will not be accepted. You may pay by cash, money order, bank check, or certified check. Checks can be made payable to yourself and endorsed over at the auction sale. You must have these funds on your person at the auction.

In what denomination should the funds be?

You should go to the auction prepared with multiples of different denominations. Depending on the estimated value of the property, bring an assortment of money orders, bank or certified checks in denominations of a thousand, a hundred, twenty, five, and singles.

How much time do I have to close?

Usually 30 days from the date of the auction sale.

What about financing the purchase?

You may obtain financing to pay the remaining 90 per cent on the
property. Ensure that you will be able to secure these funds within the 30
day payment period.

What if I can’t close due to a lack of funds?

Unlike a regular real estate transaction, if you cannot make full payment or obtain financing to close within 30 days you will lose 10% your down payment.

Can I extend the closing beyond the 30 days?

Extensions might be granted if requested prior to the end of the 30 day period.

Will it cost anything to extend the closing?

The foreclosing party may require you to pay interim interest on the
property until the closing.

What happens at the closing?

At the closing the successful bidder will receive a referee's deed. Usually, the new owner will have bought the property free and clear of all liens except for real property taxes and emergency repair liens.

What issues may there be after the closing?

The only probable outstanding issues will be the internal and external condition of the property and the eviction of any occupants.

What expenses am I liable for?

Some banks require that you pay the local and state transfer taxes.

Where are auctions held?

Bronx
Bronx County Courthouse – Room B-129 - 851 Grand Concourse, Bronx,
New York 10451

Brooklyn
Kings County Courthouse Steps facing Adams Street located at 360 Adams
Street, Brooklyn, New York

Manhattan
The Rotunda - 60 Centre Street, New York 10007

Nassau
- North Front Steps of Nassau County Courthouse, 262 Old Country
Road, Mineola, New York 11501
- Nassau Supreme Court - 100 Supreme Court Drive, Mineola, NY 11501

Putnam
- Putnam County Court House - 40 Gleneida Avenue, Carmel, NY 10512
- Putnam County Office Building - 2 County Center, Carmel, NY 10512

Queens
Queens County Courthouse - Courtroom 25 - 88-11 Sutphin Boulevard, Jamaica,
New York

Rockland
Rockland County Court House, 1 South Main Street, New City, NY

Staten Island
Foreclosure alcove - Room 106 - of the Richmond County Courthouse, 18
Richmond Terrace, St. George, Staten Island, New York

Suffolk - Properties are auctioned at their respective Town Halls as follows:
Babylon Town Hall – 200 East Sunrise Highway, North Lindenhurst, NY
Brookhaven Town Hall – 205 South Ocean Avenue, Patchogue, NY 11772
Brookhaven Town Hall – One Independence Hill, Farmingville, NY
East Hampton Town Hall – 159 Pantigo Road East, Hampton, NY 11937
Huntington Town Hall – 100 Main Street, Huntington, NY 11743
Islip Town Hall – 655 Main Street, Islip, NY
Riverhead
– 200 Howell Avenue, Riverhead, NY
- Main Lobby County Center, County Road 51, Riverhead, NY
- 235 Griffing Avenue, Riverhead, NY 11901
Smithtown Town Hall – 99 West Main Street, Smithtown, NY 11787
Southampton Town Hal – 116 Hampton Road, Southampton, NY
Southhold Town Hall – 53095 County Road, Southold, NY

Westchester - Westchester County Courthouse, 111 Martin Luther King, Jr. Blvd., White
Plains, NY 10601