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Pre foreclosure auction AUCTION.COM

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My friend is in tHe process of losing his home in New York. In 2016 the court ruled in favor of the bank. His last payment was in 2009. My friend has never hired a lawyer and never went to any of his court dates. YES HE IS STUPID!!

I told him ( I'm no expert) that the next step in the process is that a legal notice will appear in one of the newspapers and it will be auctioned off. He still lives in the home and has a tenant who pays him rent. My friend calls me and asks if it's possible that they can auction off his house via the internet. I told him that I didn't think so. As it turns out his home is being listed on Auction.com. The house is being listed for $35,000 as an opening bid. They are calling this the pre auction bid. The auction starts on Oct. 21 and ends on Oct 24 2017.


Here are my questions...

1. Since my friend lost the home and the bank probably owns it don't they have to publish it in the legal notices in the newspaper that it's going to be auctioned off?

2. The home is located in Suffolk county Long Island and is worth a lot more then $35,000. The bank wants $135,000 to get his home back which of course he doesn't have

3. There is a link on the website that shows all of the liens. One lien is from the department of Social Services is for $200,000. According to my friend anytime Social Services helps you out they automatically put a $200,000 lien on your property. He says that all he owes them is just a few thousand dollars since they paid his electric bill.


4. What are his options (if any)??? If someone buys the home via auction.com and the bank accepts the offer does that mean everything is over?


5. Will the home have a clear title? There are also a few other liens on the property. I know that someone sent the tenant a letter saying that if they voluntarily moved they would get $4,000. I also told my friend that he shouldn't expect his renter to pay Novembers rent.


6. I did read a bunch of bad reviews about Auction.com



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I'm a RE Agent but not in New York so YMMV.

Here in my state the bank will auction the house off after the Sheriff's sale but before the statutory redemption period is over. (Here it is usually 6 months). You will get a quit claim deed to the property but have no rights to access the property until the redemption period is over. Occupied auctions, at least in my state, are fairly new and banks usually only do this for problem properties they want to get rid of.

The more normal course is for the bank to do "cash for keys" where they get the owner to voluntarily leave, for a set sum of money, and not trash the house.

Usually, most liens are voided by the Sheriff's sale. Some HOA liens and property taxes can't be voided.

If NY is like my state your friend can buy the house back for the Sheriff's sale amount during the redemption period.

You might want to try posting the question on a Real Estate Board where you can get a NY specific answer.

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