On January 26, 2012 Jay B. Itkowitz and Michelle A. Maratto presented a continuing legal education course for Lawline.com entitled, Post-Foreclosure Evictions in New York City. You may watch the program and receive FREE CLE credit by clicking here.

Course Description: Because of the recent economic turmoil, the amount of foreclosed real estate in New York City has risen in past years resulting in a large number of real estate auctions. Once those properties are purchased at auction the new owners will often want to evict the occupants. It is imperative that these new owners follow the strict procedures in place in order to ensure that there are no delays in the eviction process. Join attorneys Jay Itkowitz and Michelle Maratto in this program that discusses all aspects of post-foreclosure evictions in New York City – both from the tenant’s side as well as the new owner’s side.

Here are a few Post Foreclosure Eviction Tips

Practice Tip: Don’t accept rent from the occupants without talking to your lawyer. When the relationship of foreclosure sale purchaser and occupant is changed to that of landlord and tenant, the right to the writ of assistance is waived.[1]

Counsel your clients not to accept any money from the tenants without discussing it with you first. A month-to-month tenancy is automatically created when a tenant whose term is longer than one month holds over after the expiration of the term and the landlord accepts rent after the expiration of the term.[2]

Practice Tip: Any tenant who came into the property AFTER the lis pendens was filed in the foreclosure is considered named in the foreclosure[3] and therefore you can get a writ of assistance in Supreme Court against them as part of the foreclosure.

Practice Tip: Who Cares What the Occupant’s Status is? — Buy The Occupants Out! I always tell my clients at the beginning of the quest to regain possession of a building purchased at or near foreclosure, the following: You are better off paying the occupants of the building to leave, and getting the certainty that they are gone, than paying me to fight with them and waiting for the legal process to play out. If the new owner can communicate effectively with the occupants the new owner can avoid litigation and its costs and uncertainties.

[1] Real Property Law (“RPL”) § 232-c; Zobe, LLC v. United Northern Bancshares, Ltd., 251 A.D.2d 237, 637 N.Y.S.2d 314 (1st Dept. 1998); Joyous Holdings, Inc. v. Volkswagen of Oneonta, Inc., 128 A.D.2d 1002, 513 N.Y.S.2d 841 (3d Dept. 1987).

[2] RPL § 232-a.

[3] Nomura Home Equity Loan Inc v Vacchio, 21 Misc.3d 333 (Sup. Ct. Nassau Cty. 2008).

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