New York Foreclosures for Sale

Posted in Foreclosures For Sale, August 25th, 2008 |

It is a commonly believed myth that when buying New York foreclosures for sale, the property will come with a title that is clouded by judgments and liens. This only applies to pre-foreclosed and auction bought properties. If the lender has successfully bid for a property and become the new owner of the property, they will ensure that the title is clear.

This becomes apparent because the lender is generally the senior lien holder and at purchase of the New York foreclosure for sale, all other junior lien holders will be wiped out. The mortgage is no longer in existence and to all intents and purposes the lender owns the property and can now decide exactly what they wish to do with it. The lender who purchases the property at auction will also pay any back taxes, courts costs and all other costs associated with the ownership of the property.

In instances where the lender does not attend a Sheriff’s sale and bid on a property, this should ring warning bells to the investor. It means they do not want the property and it could be sue to the fact that there are more superior liens of judgments on the property; such as IRS and tax liens. These liens take precedent over any other liens. This should be carefully noted by the investor as he does not want to lose money when investing in New York foreclosures for sale. On the contrary, he is in the business to make a profit!

In and effort to recoup losses on the defaulted mortgage repayments, the lender will bid on the property and secure a clear title. No lender what to go to the time, money and effort of foreclosing on a property, only to have it taken away for a couple of thousand dollars owing in back taxes. Once the lender has settled these costs, they will add them to the asking price of the New York foreclosure for sale, and re-sell it with a clear title.

Nowhere does it state that a lender has to sell a property for the price they paid for it at the Sheriffs sale. They may even make any necessary repairs to make the property saleable and this too will be added onto the asking price.

Lenders are not bending over backwards to offer cheap New York foreclosures for sale to the public. They do want to sell these but they are after all lending institutions, they have shareholders to answer to and are in business to make profits not losses.

Selling repossessed property is by no means a new thing, it has only come to light more in recent years, due to the amount of repossessions increasing, and type of public exposure the facts of this situation are receiving.

Through years of experience, lenders have developed many methods to dispose of the New York foreclosures for sale on their listings. These are not just given away for a song, no lender wants to do this and they have found ways to dispose of these properties with the minimum of loss.