During a foreclosure proceeding in New York, the court has entered a judgment of foreclosure and sale. The property is scheduled for auction. If no third-party bidders appear at the foreclosure sale, what typically happens to the property?
Correct Answer
A) The foreclosing lender may bid and typically acquires the property
In New York foreclosure sales, the foreclosing lender has the right to bid at the auction and often becomes the successful bidder when no third parties bid. The lender can bid up to the amount of the debt owed, and if successful, takes title to the property (becoming an REO - Real Estate Owned property).
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