Escrow & Title

In New York, a 'foreclosure by advertisement' is:

AA common alternative to judicial foreclosure in New York
BNot available in New York; all residential mortgage foreclosures must be judicial✓ Correct
CPermitted only for commercial properties
DAvailable only for mortgages of less than $500,000

Explanation

New York is a judicial foreclosure state. Unlike some states that allow non-judicial foreclosure (foreclosure by advertisement or power of sale), New York requires all residential mortgage foreclosures (and most commercial mortgage foreclosures) to proceed through court under RPAPL Article 13. This provides borrowers with due process protections but makes foreclosures significantly slower and more expensive in New York.

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