Eviction After Foreclosure in New York: What to Expect

After a foreclosure auction, many families worry they will come home to changed locks. In New York, that is not how it works. The new owner has to follow a legal process, and you have rights along the way. Knowing the steps can help you plan your move and avoid surprises.

When does eviction start?

Nothing changes about your right to stay while the foreclosure case is still going on. You can stay in your home until the property is sold at auction and a court orders you to leave.

After the auction, the buyer receives a referee’s deed. Often the buyer is the bank itself. Only after that can the new owner begin the eviction process.

The eviction process step by step

1. A 10-day notice to quit

If you are the former owner, the new owner must first serve you with a 10-day notice to quit. It is usually delivered with a copy of the referee’s deed. The notice tells you to leave within 10 days.

2. A court case

If you are still in the home after 10 days, the new owner has to start an eviction case, called a holdover proceeding, in court. You will be served with court papers telling you when to appear. Go to every court date. If you do not appear, the court can rule against you automatically.

3. A judgment and warrant

If the court rules for the new owner, it can issue a warrant of eviction. In some cases the judge may give you extra time to move.

4. Notice from a marshal or sheriff

Only a city marshal (in New York City) or a sheriff (outside the city) can carry out an eviction. You must receive written notice before they come to remove you.

What the new owner cannot do

In New York it is illegal for the new owner to lock you out, remove your belongings, or shut off your utilities to force you to leave without a court order. If this happens, call the police and contact a lawyer right away. In New York City, you can also call 311.

If you are a tenant in a foreclosed home

If you rent the home or an apartment in it from the person who lost it to foreclosure, you may have stronger protections. Under federal law, most tenants in foreclosed homes are entitled to at least 90 days’ notice before they must move, and some tenants with a lease may be able to stay until the lease ends. Keep paying rent and save proof of every payment.

“Cash for keys” offers

Some new owners, especially banks, offer money if you agree to move out by a certain date and leave the home in good condition. This is called cash for keys. It can help pay for your move, but read the agreement carefully, make sure the amount and move-out date are in writing, and ask a lawyer or housing counselor to review it before you sign.

How to plan your move

• Start looking for housing as soon as an auction date is set, not after the notice to quit arrives
• Gather important documents: IDs, birth certificates, tax returns and pay stubs, which landlords will ask for
• Ask about surplus money: if the home sold for more than you owed, you may be able to claim the difference from the court
• Contact local housing assistance programs. In New York City, call 311 to ask about emergency housing help
• Take photos of the home’s condition when you leave

If the auction has not happened yet

If your home has not been sold, you still have options that can keep you from ever reaching eviction. You may be able to stop or delay the foreclosure auction, keep working on a loan modification, or sell through a short sale. Homeowners who complete a short sale may qualify for our short sale relocation grant to help pay for moving and a fresh start.

Facing eviction after foreclosure? Get free help

Abraxas Foundation is a New York nonprofit that helps homeowners understand their options and avoid foreclosure. We meet you at your home, our help is completely free, and we can refer you to free legal assistance and HUD-approved housing counselors.

Call (929) 346-5734 or tap the button below for a free, confidential review.

Helpful official resources: NY Courts CourtHelp: Foreclosure and NY DFS Foreclosure Consumer Bill of Rights.

This article is general information, not legal or financial advice. Speak with a housing counselor or attorney about your situation.