After the foreclosure sale in New York
The auction ends the case but not the consequences. Money may be owed to you, money may be claimed from you, and nobody can put you out without a judge. This page covers the four things that follow a sale and the deadlines on each.
No redemption period after a New York sale
Deficiency motion: 90 days from the deed
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What the sale ends,
and what it does not.
A New York foreclosure sale extinguishes your ownership and your right to redeem. There is no statutory period afterwards in which you can buy the house back.
What it does not end: your right to any money the sale brought in above the debt; the lender's ability to ask for the shortfall, within a strict window; your right to stay until a court orders otherwise; and the tax reporting that follows any cancelled debt. Each of these has a form, a clerk and a deadline, and each is easier to deal with in the month after the sale than a year later.
The deed is the clock
Several deadlines run from the day the referee delivers the deed to the buyer, not from the auction. The deed is recorded with the county clerk; its date is public.
The four things
Surplus, deficiency, possession, taxes.
- 01
Surplus: money owed to you
If the sale brought more than the mortgage debt, costs and any prior liens, the extra is paid into court within five days. Junior lienholders and the former owner claim it by filing a notice of claim with the county clerk before the report of sale is confirmed.
- 02
Deficiency: money claimed from you
If the sale brought less, the lender may move for a deficiency judgment within 90 days of the deed. The amount is capped by the higher of the sale price or the market value the court finds, and the motion can be opposed. No motion in time means no deficiency, ever.
- 03
Possession: staying and leaving
Only a court can remove a former owner: a holdover case after a ten-day notice to quit and exhibition of the deed, or a writ of assistance under the judgment. A tenant with a lease keeps it for the rest of its term or 90 days, whichever is longer.
- 04
Taxes: the 1099 forms
The lender files a 1099-A when it takes the property and a 1099-C if it cancels $600 or more of the debt. Cancelled debt is generally income unless an exclusion applies. Keep the forms and take them to a tax professional.
In detail
How each one works.
These are statutory procedures with named forms and clerks. The sources at the foot of the page cite each.
Claiming surplus money
The referee who conducts the sale pays any surplus into court. Anyone claiming it, the former owner included, files a written notice of claim with the county clerk before the referee's report of sale is confirmed, stating the nature and amount of the claim and an address. The court decides competing claims, usually by appointing a referee to hear them, and the statute requires that the owner of the equity of redemption be notified by mail of any hearing.
Claims are paid in order of priority, so a second mortgage or a judgment lien is paid before the former owner. Whatever is not claimed goes to the State Comptroller as abandoned property after five years, where it can still be recovered.
Opposing a deficiency judgment
The lender's motion must be made within ninety days after the deed is delivered to the buyer; if it is not, the sale proceeds are deemed full satisfaction of the debt and no deficiency can be recovered in any later action. The amount is the debt with interest, plus prior liens and costs, less the higher of the sale price or the fair market value as the court determines it. That last part is where most opposition happens: an appraisal showing a higher market value reduces the judgment.
The court system's own guidance lists the grounds: the motion was late; you were never personally served with the summons and never appeared in the case; the motion itself was not served on you personally as required; or the market value at the time of sale was higher than the lender claims, which you prove with an appraiser.
Nobody is removed without a court order
A buyer who wants a former owner out has two routes. A summary holdover proceeding under RPAPL § 713(5) requires a ten-day notice to quit and that the referee's deed, or a certified copy, be exhibited to you; a case brought without those steps is dismissed. Alternatively the buyer asks the foreclosure court for a writ of assistance under the judgment. Either way a judge signs an order before a sheriff or marshal can act, and you can appear and be heard.
Tenants are protected separately: the new owner must give written notice of their rights, and a tenant may stay for the greater of the rest of the lease or ninety days from that notice.
The record, and how long it lasts
A foreclosure, like a civil judgment or a charged-off account, may be reported on your credit file for seven years under the Fair Credit Reporting Act; a bankruptcy for ten. For an account that was charged off or sent to collection, the seven years runs from 180 days after the delinquency that led to it began, not from the sale. What that means for a future mortgage has its own guide.
This page describes general New York foreclosure procedure. It is not legal advice, and procedure has exceptions, county practice and case law that no general page can apply to an individual situation. NewYorkForeclosureHelp.com is not a law firm, a lender, or a government agency. If a deadline, court date, or sale date is approaching, speak with an attorney promptly.
Deadlines
The post-sale calendar.
Everything below is counted from a recorded event, so the dates can be established from the clerk's record.
| Consideration | What | When |
|---|---|---|
| Surplus paid into court | By the referee | Within five days of receiving it |
| Notice of claim to surplus | Filed with the county clerk | Any time before the report of sale is confirmed |
| Deficiency motion | By the lender | Within 90 days after the deed is delivered to the buyer |
| Notice to quit | Served on a former owner before a holdover case | At least ten days before the case is started, with the deed exhibited |
| Tenant occupancy | After the new owner's written notice | The rest of the lease or 90 days, whichever is greater |
| Unclaimed surplus | Turned over to the State Comptroller | After five years |
| Credit reporting | Foreclosure and judgments | Up to seven years |
Sources at the foot of the page. Your county page shows the clerk's office where the report of sale and the deed are filed.
Common questions
About what follows a sale.
Do I have to leave immediately after the foreclosure sale?
No one can remove you without a court proceeding. The new owner must serve a ten-day notice to quit and show you the referee's deed or a certified copy before starting a holdover case, or ask the court for a writ of assistance under the judgment. Either way a judge signs before a marshal or sheriff acts.
Can the lender still come after me for money after the sale?
Only through a deficiency judgment, which requires a motion within 90 days of the deed being delivered to the buyer. The amount is the debt less the higher of the sale price or the market value the court finds, and you can oppose the motion. If no motion is made in time, the sale proceeds are treated as full payment.
How do I claim surplus money after a foreclosure in New York?
Surplus is paid into court. File a written notice of claim with the county clerk before the referee's report of sale is confirmed, stating your claim and your address; the court then decides the claims, usually through a referee, and you must be notified of the hearing. Unclaimed surplus goes to the State Comptroller after five years.
Will I get a tax form after the foreclosure?
Usually. A lender that takes the property files Form 1099-A, and one that cancels $600 or more of the debt files Form 1099-C. Cancelled debt is generally treated as income unless an exclusion applies, so take the forms to a tax professional.
How long does a foreclosure stay on my credit report?
Up to seven years under the Fair Credit Reporting Act. A bankruptcy can be reported for ten. For an account that was charged off, the seven years runs from 180 days after the delinquency that led to it began.
Statutes and guidance behind this guide
- A1: Deficiency = debt, prior liens and costs, less the higher of sale price or court-determined market value; the motion must be made within 90 days of delivery of the deed or the proceeds are full satisfaction. (RPAPL § 1371), read 2026-09-10
- A2: Grounds the court system lists for opposing a deficiency motion: late motion, never personally served and never appeared, motion not served personally, market value higher than claimed (appraiser proof). (NY Courts CourtHelp), read 2026-09-10
- A3: Surplus is paid into court within five days; anyone claiming it files a notice of claim with the clerk before the report of sale is confirmed; the owner of the equity of redemption is notified of any hearing. (RPAPL §§ 1354, 1361), read 2026-09-10
- A4: Unclaimed surplus goes to the State Comptroller as abandoned property after five years. (Abandoned Property Law), read 2026-09-10
- A5: Removal is by court proceeding only: a holdover after a ten-day notice to quit and exhibition of the deed, or a writ of assistance under the judgment. (RPAPL § 713(5)), read 2026-09-10
- A6: A tenant may stay for the rest of the lease or 90 days from the new owner's written notice, whichever is greater. (RPAPL § 1305), read 2026-09-10
- A7: A lender that takes the property files Form 1099-A; one that cancels $600 or more of debt files Form 1099-C; in the same year it may file only the 1099-C. (IRS Instructions for Forms 1099-A and 1099-C), read 2026-09-10
- A8: Most adverse items, including a foreclosure, may be reported for seven years; bankruptcies for ten. (15 U.S.C. § 1681c), read 2026-09-10
- F24: The sale ends the right of redemption; New York has no post-sale redemption period. (Court of Appeals precedent), read 2026-09-10
Checked against RPAPL Article 13, RPAPL § 713, § 1305, the IRS form instructions, the Fair Credit Reporting Act and the court system's own guidance on 2026-09-10, and recorded in the site's evidence file.
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