In New York State, when a borrower fails to make necessary mortgage payments and the creditor (the bank) sues the borrower, it is called a foreclosure. At the conclusion of a foreclosure action, if the creditor wins, the mortgaged property will be auctioned off to a third party, or the creditor will take ownership of the property if there are no bidders at the auction. The average length of a foreclosure action in New York from start to finish is currently over 1,000 days.
First, unless the tenant has received court papers appointing a receiver to collect rents or is shown a deed that transfers ownership of the property, the tenant must continue paying rent to the landlord. Even if the landlord is being sued in a foreclosure action, the tenant will be subject to eviction in housing court if they fail to keep current with their rent payments to the landlord.
Second, tenants who reside in a rent stabilized or rent controlled apartment will not be affected by the foreclosure, providing they are current on their rent.
Finally, the law requires that bona fide, market rate tenants receive adequate notice to vacate their building or home. Tenants must be given a minimum of ninety days from receiving notice to vacate before they may be removed from the property. Additionally, tenants who receive notice to vacate must be given the name and address of the requesting party.
Generally, whoever is in control of a building or home (the landlord, the receiver, the bank, if an auction is responsible for making repairs and maintaining the building.
For questions or additional information, please contact BSCLS at (718) 636-1155
For additional information, contact BSCLS at (718)636-1155
