In New York, if one defaults on a mortgage loan, then the lender can foreclose on the property. Â This is known as the power of sale. However, the borrower of the loan can move to have the foreclosure sale stayed and if this is approved by the court, then it will be stayed. However if it is denied, then the foreclosure sale will proceed. Recently, the owner of a property who defaulted on a loan wanted to stay the foreclosure sale so that a short sale could Â be approved by the lender and to be completed by the owner, as reported by the New York Law Journal in a May 1, 2013 news article.
A short sale is when the lender agrees to an immediate sale for whatever the property is worth and has been contracted to sell and to release the debtor on any money or obligation that is owed on the property The lender opposed the foreclosure stay and argued that there should not be a stay because the owner was in default and did not have the right to seek a stay. As a result, the court denied the ownerâ€™s request for a stay and ordered that the foreclosure sale proceed. Moreover, the court stated that the ownerâ€™s short sale request was not a defense to the foreclosure action.
We at Jayson Lutzky, P.C. can provide you with the information you need if you are in debt and face foreclosure, then please feel free to call us at 1-800-660-5299 for a free initial in office consultation or visit our website at www.MyNewYorkCityLawyer.com.