NY FORECLOSURE QUESTIONS

Foreclosures, Short Sales, Tax Foreclosures
1

SCENARIO.

AMOUNT FORECLOSED: 100,000.00
WINNING BID: 250,000.00

SURPLUS: 150,000.00

  1. The Transfer tax in NY is a responsibility of the SELLER. However, since the property was bought at foreclosure → who pays the TAX? Can it be covered from the SURPLUS of the wining BID?

  2. If there are other OVERDUE items such as UNPAID maintenance - Can it be covered from the SURPLUS of the wining BID? Note - that UNPAID maintenance has not been filled as LIEN against property → does this change the outcome in anyway?

  3. If there are PRIOR LIENS that are SUPPERIOR to the MORTGAGE being foreclosed → do they automatically become a liability to the PURCHASER or Can they be covered from the SURPLUS of the wining BID?

  4. Why do we need a lien search on the CO-OP? Since it is not a real property - the lien can only be attached to the owner - Is this correct?

2

Good evening,

You are not the foreclosing party so you don’t get to decide on how the surplus is used.
D