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BillyBob11706

Foreclosed in May 2016 New York now what?

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I am helping out a friend once again. In 2009 he made his last payment and Wells Fargo started the foreclosure process. I told him not to worry because he owed so little money and his house was worth so much more. I did say that you probably had a year or so to get your financial house in order. Needless to say that didn't happen. He just got in deeper. The fees just kept adding up. His home still had a ton of equity in it.

 

In May of 2016 the Supreme Court of New York made the final ruling that his home was officially foreclosed and the case was closed.

 

Question 1... It's my understanding that the lawyers for the bank has to publish in the newspaper that his house was foreclosed and that it will go up for auction.

Usually they publish this for a period of 6 weeks (once a week). The home is worth approx $175k and he owes the bank approx $100k. give

or take. He is under the assumption that he can still get a "Hardship loan modification" since his wife died in 2009 and she was the bread winner.

I told him that he is crazy, he waited too long.

 

Question 2. He thinks that if he came up with some money that he will be able to save the house. I told him that since he waited so long there probably isn't

anything that he can do. The bank went to court and won in 2016. The next step is to hold an auction. He is a VET but I told him that he waited

too long. He never got an attorney.

 

Question 3. He wants to send in $25k to show good faith. I told him if he sends in any money he can probably kiss it good buy So far nothing was ever signed and

he never went to any meetings. My advice is to save the money and use it to start your new life.

 

Question 4. He hasn't had a job on the books since 2008 or so. The only income was when he rented out part of his house for $1,500 a month. He never filed

income taxes on that so I told him that doesn't count. Still no job as of today.

 

Question 5 I know that in New York (suffolk County) things are crazy in the court system. It takes forever to get a case rolling. Since it's been a year from

the time the judge ruled in favor of the bank and the case is officially closed, how long does it take to have it published in the newspaper? So

far it's been a year since the judge granted the foreclosure and closed the case. I told my friend that he better make arrangements because

time was running out. How long does it take for it to appear in the newspaper?

 

 

Thanks for any advice. I told him that he lived rent free for 8 years and he should consider himself very lucky. (He has no computer)

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If the foreclosure happened, he's (She's) done. There are no redemption periods in New York after a foreclosure. If the property went to sale and reverted back to the beneficiary, it's there's to do with what they see fit to do. They owe nothing to the previous borrower upon sale.

 

If the property went to sale and sold third party (Not reverted back to the lender) and the sale was for more than total debt, any excess proceeds would be paid to junior lienholders behind the foreclosing entity (Assuming there are) and then finally to the borrower, if there are any excess proceeds..

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