Foreclosure in New York is:
Question & Answer
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Non-judicial by power of sale
Non-judicial foreclosure by power of sale is used in approximately 30 states including California, Texas, and Georgia, where the mortgage or deed of trust contains a clause allowing the lender to sell the property without court involvement — this mechanism does not exist in New York's residential mortgage framework.
Judicial through the court system
Administrative
Administrative foreclosure is not a recognized foreclosure method for private residential mortgages in any U.S. state; it is occasionally used for certain government loans or tax liens but is not applicable to conventional mortgage foreclosures in New York.
By strict foreclosure
Strict foreclosure is an archaic method, still used in a very limited way in Connecticut and Vermont, where the court simply vests title in the lender without a public sale if the borrower fails to redeem — New York abolished strict foreclosure in favor of the foreclosure-and-sale method, which requires a public auction to protect the borrower's equity.
Why is this correct?
Answer B (judicial through the court system) is correct because New York's Real Property Actions and Proceedings Law (RPAPL) Article 13 mandates that mortgage foreclosures be conducted as judicial proceedings filed in the New York Supreme Court, which is the state's trial court of general jurisdiction. There is no power-of-sale provision available in standard New York residential mortgages, meaning lenders cannot bypass the courts regardless of what language might appear in the mortgage document. The judicial process includes filing a complaint, serving defendants, conducting mandatory settlement conferences for residential properties under CPLR 3408, obtaining a judgment of foreclosure and sale, appointing a referee, and conducting a public auction.
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