The auction will take place at the court-designated location and the property knocked down (sold) to the highest bidder. Once an auction date has been selected, the plaintiff is required to serve a Notice of Sale upon the defendants, file proof of service of the Notice of Sale with the court and have the Notice of Sale published in a newspaper selected by the judge. The plaintiff will coordinate with the court-appointed Referee on selecting a date for the auction of the property. The JFS will appoint an attorney as the referee assigned the task of selling the foreclosed property at an auction sale which is held at the courthouse. Once the JFS has been entered by the clerk of the court, the foreclosing plaintiff will serve upon the defendants notice of its entry. In a foreclosure action, a judge signs the Judgment of Foreclosure and Sale (the “JFS”). A: Foreclosure sale and deposit of surplus moneys If, after 5 years, no one has claimed the Surplus Moneys, then the clerk of the court turns it over to the NYS Office of the Comptroller as abandoned property. Once the surplus moneys are deposited with the court, the Surplus Moneys remain there until someone claims them. If the property sells for more than the balance due to the plaintiff pursuant to the Judgment of Foreclosure and Sale, the remainder (the “Surplus Moneys”) is deposited with the court, to be held pending further order ( see, RPAPL Section 1354). If the property sells at auction for less than the balance due to the foreclosing plaintiff, the defendant/obligor may be held liable for the deficiency ( see, RPAPL Section 1371). Once an auction has taken place, a referee appointed by the court to sell the property makes his/her report after closing title to the successful bidder. The culmination of a mortgage foreclosure action is the auction sale of the mortgaged property. Surplus Moneys Proceedings in Foreclosure Actions:
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