Court-supervised sale
Nassau and Suffolk auctions are run by a court-appointed referee. Sale terms are dictated by the Judgment of Foreclosure and Sale — read it before you bid.
Foreclosure Auctions · Long Island
Long Island Foreclosure Auction Properties
Foreclosure auctions on Long Island happen at the Nassau and Suffolk County courthouses (and increasingly online). They can be a path to deeply discounted real estate — but only if you understand the deposit rules, title risk, and 'as-is, sight unseen' nature of the sale before you raise a paddle.
Overview
How foreclosure auctions work in New York
New York is a judicial-foreclosure state, which means a lender must sue the borrower and obtain a Judgment of Foreclosure and Sale before a property can be auctioned. Once the judgment is entered, a court-appointed referee schedules the sale — typically on the courthouse steps in Nassau (Mineola) or Suffolk (Riverhead), with the date published in a local legal newspaper.
The high bidder must immediately put down a 10% deposit (usually by certified or bank check made payable to the referee) and close within 30 days. There is no inspection contingency, no financing contingency, and no title insurance until you do your own diligence post-sale.
What to expect
What to know before bidding
10% non-refundable deposit
The winning bidder posts 10% in certified funds on the spot. Forfeit the deposit if you can't close in 30 days — no exceptions.
No inspections, no contingencies
Auction properties are sold as-is, sight unseen. You inherit any condition issues, code violations, and tax/water arrears that survive the sale.
Junior liens & occupants
Upset price clears the foreclosing lien — but municipal liens, federal tax liens, and post-judgment occupants can still be your problem. Title work matters.
Surplus & upset price
Lenders usually open at the upset price (judgment + costs). Many auctions get no third-party bid and revert to REO — where most retail buyers actually win.
Most retail buyers win at REO
If the property reverts to the bank, it typically lists on the MLS as REO 60–120 days later — with title insurance, financing options, and inspections allowed.
FAQ
Frequently Asked Questions
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