NYC Foreclosure Auctions – Any Tips or Advice?

Question

Hello everyone,

I'm interested in learning more about NYC foreclosure auctions, and I was hoping to tap into the collective knowledge here. If anyone has experience or tips to share, I’d really appreciate it!

Here are a few things I'm curious about:

• How do foreclosure auctions work in NYC? - I understand that properties go to auction, but what’s the process like from start to finish? 
• What’s the redemption period like? - I’ve heard that in some cases, the homeowner can still redeem the property after the auction. How long does this period last in New York, and how does it impact the auction?
• What are the risks? - What should I be aware of when bidding at these auctions? Are there any hidden costs or legal issues I need to consider?
• Any general tips or advice? - Whether it’s about funding, research, or things I should look for in the auction listing, any insights are appreciated!

How do foreclosure auctions work in NYC? - I understand that properties go to auction, but what’s the process like from start to finish?

What’s the redemption period like? - I’ve heard that in some cases, the homeowner can still redeem the property after the auction. How long does this period last in New York, and how does it impact the auction?

What are the risks? - What should I be aware of when bidding at these auctions? Are there any hidden costs or legal issues I need to consider?

Any general tips or advice? - Whether it’s about funding, research, or things I should look for in the auction listing, any insights are appreciated!

Thanks in advance for your help!

Mohammed Rahman · Answer

Hey! You're asking all the right stuff. Here's the quick lowdown:

How they work:
Once the bank gets a court order, the property gets auctioned—usually at the courthouse. You show up with certified funds, bid, and if you win, you put down 10% right there. You’ve got about 30 days to pay the rest.

Redemption period:
NY doesn't have one after the auction. Once it’s sold, that’s it. Owners can try to stop the auction beforehand, but after the sale, it’s pretty final.

Risks:
You buy it as-is. No inspections, no walkthroughs. Could be occupied, could have liens, violations, whatever. Always do a title search before you even think about bidding.

Tips:
Watch a few auctions first. Research the property—Google it, check DOB for violations, HPD for complaints, etc. And have your money ready—no financing here.