LIEB BLOG

How current events impact your business and real estate holdings

Thursday, February 04, 2010

Redemption at forelcosure

A debtor can redeem (pay off the amount owed) at a foreclosure (prior to the actual sale) and stay in the home. The debtor does not need prior court approval regardless of CPLR 5236 & CPLR 5240 (which are statutes regulating legal practice that state to the contrary) because there is a common law (general understanding law) that permits such payments.

See Rondack Constr. Servs., Inc. v. Kaatsbaan Intl. Dance Ctre., In.c, 2009 NY Slip Op 09264 - for the Court of Appeals' (highest court in the State of New York)decision stating this rule.

Take Away - Until a house is sold at foreclosure a homeowner can always pay off the entirety of their debt and avoid foreclosure - its equitable - its fair - and its the way it should be.

Thoughts?

No comments:

Post a Comment

Share your thoughts and ask your questions here.

Only restrictions are no spam, discrimination, and/or harassing others.

By commenting here you assign us a irrevocable, worldwide, perpetual and royalty free license on your copyright to reproduce your comment, in whole or in part, as we unilaterally deem fit.