Foreclosure Auction Part

Supreme Court, New York County Auction Part Rules

An auction will not go forward if it is not on the Auction Calendar

  1. Prior to scheduling publication, the plaintiff and referee shall contact the Auction Part clerk at SFC-Forclosures@nvcourts.gov to place the auction on the auction calendar. Plaintiff must confirm that the case in question has had a COVID-19 Assessment Conference before the auction is scheduled. This includes cases where judgments of foreclosure and sale have already been issued (even prior to March 15, 2020).   

    Pursuant to Administrative Order 232/20, a COVID-19 Assessment Conference need not be held where the foreclosing lender submits an affirmation to the court averring that, following diligent inquiry, it knows the property at issue to be currently abandoned and vacant. A COVID-19 Assessment Conference also need not be held on in-rem foreclosures except where the enforcing officer believes that such a conference would be in the public interest, for example, where the conference is likely to result in a settlement beneficial to all parties.

  2. The Referee and all interested parties must be present on the scheduled auction date at 2:15 p.m. on the portico at 60 Centre Street.
  3. The Terms of Sale must be posted on the portico before the auction begins. The Referee shall afford prospective bidders time to review the Terms of Sale.
  4. At his or her discretion, the Referee may choose not to accept cash.
  5. A successful bidder must have in his/her possession at the time of the bid the full 10% of the sum bid, in cash (if accepted at the referee’s discretion) or certified or bank check to be made payable to the Referee.
  6. All persons wishing to bid on properties must register with the Referee and provide proof of identification.
  7. Bidders will be required to stand and state their names at the time the bid is made.
  8. Bidders are permitted to use cell phones to communicate with business partners via text messages only. Phone calls and video calls (such as FaceTime, Skype or Teams) are not permitted.
  9. No sale will be deemed final until the full 10% deposit has been paid to the Referee and the Terms of Sale have been signed; this must be done immediately following the auction.
  10. If a successful bidder fails to immediately pay the deposit and sign the Terms of Sale, the property will be promptly re-auctioned the same afternoon.
  11. Bidders are cautioned that the failure to furnish the 10% deposit or sign the Terms of Sale after winning an auction may result in the loss of future bidding privileges. The Court reserves the right to impose penalties for inappropriate behavior or other misconduct as it sees fit.
  12. Within 10 days of the auction the Referee shall report to the auction clerk via email (SFC-Forclosures@nvcourts.gov) the amount of the successful bid (the purchase price) and the name and address of the successful bidder.
  13. Within 10 days of the auction the Referee shall report to the auction clerk via email (SFC-Forclosures@nvcourts.gov) the sale price, the amount awarded in the judgment of foreclosure and sale and the upset price. The clerk shall record and enter this information in the court’s computer system.
  14. The Referee conducting the sale shall complete a Surplus Monies Form immediately following the sale. All information must be completed; if there is no surplus, then that must also be indicated.15.
  15. Within 10 days of the auction, the Referee shall deliver the signed Surplus Monies Form to the auction clerk via email (SFC-Forclosures@nvcourts.gov). The auction clerk shall upload the form to NYSCEF (if an e-filed case) or provide it to the County Clerk (if a paper case).
  16. All bidders must wear a face mask/shield at all times when in the courthouse and social distancing must be observed by all bidders at all times while in the Auction Part. Bidders who do not comply with the face mask and/or the social distancing mandate will be removed from the courthouse.
  17. A copy of these rules will be appended to all Judgments of Foreclosure and Sale.

November 2020