What is foreclosure by judicial sale?

Foreclosure by judicial sale is a legal process used in New York to take back a property that has been used as collateral for a loan, such as a mortgage. Foreclosure by judicial sale is used in New York when a mortgage or loan goes into default—the homeowner can no longer make the payments and the lender needs to take back the property. The lender initiates the process by filing a lawsuit in a state or local court. The court then hears the case and, if necessary, orders the sale of the property to pay off the debt. The sale of the property is handled by a court-appointed official, called a referee or master. The referee or master sets up the sale, advertises it, holds the auction, and records the sale information. The person or business who purchases the property is then required to pay off the mortgage debt in full, plus any additional court costs. The main benefit of foreclosure by judicial sale is that is provides an orderly process to ensure that sale of the property is handled properly and the rights of all parties are respected. The downside of this process is that it can take a considerable amount of time and cost the homeowner a lot of money in legal and court costs.

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What is foreclosure by judicial sale?

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