EVERY C L O UD HA S A SIL VER L INING A PRIM ER O N S U RPLU S - - PowerPoint PPT Presentation

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A PRIM ER O N S U RPLU S PRO C EED IN G S FO R FO REC LO S U RE PREV EN TIO N A D V O C A TES

EVERY C L O UD HA S A SIL VER L INING

Aya na Robe rtson

Asso c ia te Dire c to r Bro o klyn L e g a l Se rvic e s

Me lissa Ysa g uirre

Se nio r Sta ff Atto rne y F

• re c lo sure Pre ve ntio n Pro je c t

Bro o klyn L e g a l Se rvic e s

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 Who ma y file : Any pe rso n c la iming the surplus mo ne ys

a rising upo n the sa le o f mo rtg a g e d pre mise s - e ithe r in his/ he r o wn na me o r b y a n a tto rne y

 Go ve rning L

a w



R.P.A.P.L . §1354 – Distrib utio n o f Pro c e e ds o f Sa le



R.P.A.P.L . §1355 – Re po rt o f Sa le ; Co nfirma tio n



R.P.A.P.L . §1361 – Applic a tio n fo r Surplus



R.P.A.P.L . §1362 – Pa yme nt to Surplus Out o f Co urt

POST F ORE CL OSURE AUCT ION SURPL US PROCE E DINGS

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 F

iling a No tic e o f Cla im

 Mo tio n to Co nfirm Re fe re e ’ s Re po rt o f Sa le  He a ring to Asc e rta in a nd Re po rt the Amo unt Due

to Cla ima nts

 Mo tio n to Co nfirm Re fe re e ’ s Re po rt a nd Dire c t

Distrib utio n (if a he a ring is o rde re d b y the c o urt)

 Ob ta in Ce rtifie d Co py o f the Orde r fo r Distrib utio n  Applic a tio n fo r Distrib utio n to the NYC De pa rtme nt

• f F

ina nc e

PRO CE DURE

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

Out o f the pro c e e ds o f the sa le , the o ffic e r (re fe re e ) sha ll pa y:



the e xpe nse s o f the sa le ;



the a mo unt o f the de b t, inte re st a nd c o sts o we d to pla intiff;



a ll ta xe s, a sse ssme nts, a nd wa te r ra te s whic h a re lie ns upo n the pro pe rty;



fro m the the n re ma ining pro c e e ds a nd if the judg me nt o f sa le ha s dire c te d, a ny a mo unt due to the ho lde r o f a ny sub o rdina te mo rtg a g e ; a nd



All surplus mo ne ys a rising fro m the sa le sha ll b e pa id into c o urt b y the o ffic e r c o nduc ting the sa le within five da ys

R.P.A.P.L . §1354 DIST RIBUT ION OF PROCE E DS OF SAL E

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NOT ICE OF CL AIM

 Ho me o wne r ma y file a

writte n no tic e o f c la im, sta ting the na ture a nd e xte nt o f his c la im a nd the a ddre ss o f himse lf o r his a tto rne y, a t a ny time b e fo re the c o nfirma tio n o f the re po rt o f sa le

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

Within thirty (30) da ys a fte r c o mple ting the sa le a nd c o nve ya nc e to the purc ha se r, the re fe re e must file with the c le rk his re po rt o f the dispo sitio n o f the pro c e e ds o f the sa le



A mo tio n to c o nfirm the re po rt o f sa le sha ll no t b e ma de within thre e mo nths a fte r the filing o f the re po rt, b ut no t la te r tha n fo ur mo nths a fte r the filing o f suc h re po rt



F a ilure to mo ve within this time pe rio d ma y b e disre g a rde d if no pre judic e is de mo nstra te d. C.P.L .R. §2001; F ide lity Bo nd & Mo rtg a g e Co . v. L uc a s, 135 A.D.2d 778, 523 N.Y.S.2d 125 (2d De pt. 1987).

R.P.A.P.L .§ 1355 RE PORT OF SAL E ; CONF IRMAT ION

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

Mo tio n fo r c o nfirma tio n o f the re fe re e ’ s re po rt o f sa le must b e

• n no tic e to a ll pa rtie s who have a ppe a re d in the a c tio n o r

file d c la ims



T he c o urt, b y re fe re nc e o r o the rwise , sha ll a sc e rta in a nd re po rt the a mo unt due to the c la ima nt o r a ny o the r pe rso n who ha s a lie n o n the surplus mo ne y, the prio rity o f the lie ns a nd o rde r distrib utio n o f surplus mo ne y



Cla ima nt ma y file a mo tio n to c o nfirm a nd dispe nse with re fe re nc e a nd dire c t distrib utio n b ut the c o urt c a n o rde r a he a ring b e fo re funds a re distrib ute d R.P.A.P.L .§ 1361(3).

R.P.A.P.L .§ 1361 APPL ICAT ION F OR SURPL US; RE F E RE NCE

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

Must inc lude :



F ile d No tic e o f c la im



Cla ima nt/ Ho me o wne r’ s De e d



Judg me nt o f fo re c lo sure a nd sa le



Re fe re e ’ s re po rt o f sa le



Re c e ipt o f de po sit o f surplus funds fro m Co unty Cle rk



Ce rtific a te o f de po sit fro m De pa rtme nt o f F ina nc e

 (must sub mit a pplic a tio n to DOF prio r to ma king mo tio n)



Ce rtific a tio n o f Appe a ra nc e s fro m Co unty Cle rk

 (ma y b e a fe e a nd ma y re q uire a wa iting pe rio d)



No tic e o f No E xc e ptio ns fro m Co unty Cle rk

 (ma y b e a fe e a nd ma y re q uire a wa iting pe rio d)

E XHIBIT S F OR MOT IONS AND HE ARINGS (IF RE QUIRE D)

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E XHIBIT S: RE CE IPT OF DE POSIT

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E XHIBIT S: CE RT IF ICAT E OF DE POSIT

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E XHIBIT S: CE RT IF ICAT ION O F APPE ARANCE S

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E XHIBIT S: CE RT IF ICAT E O F NO E XCE PT IONS

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 No tic e re q uire d



Se rve a summo ns to a tte nd to a ll a ppe a ring pa rtie s, c la ima nts a nd o the r pa rtie s the o rde re d b y the c o urt (se e sa mple )

 Re po rte r o ptio na l (b ut re c o mme nde d)  Pro vide Re fe re e with e xhib its in a dva nc e  E

nte r pa rty a ppe a ra nc e s a nd mo tio n e xhib its into the re c o rd.



I nc lude Orig ina l Affida vit o f Se rvic e sho wing the pa rtie s se rve d with “Summo ns to Atte nd Be fo re Re fe re e ”

HE ARING

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 Re fe re e ’ s re po rt a nd re c o mme nda tio n in surplus

pro c e e ding (sa mple inc lude d in ma te ria ls);



Se rve a ll pa rtie s who a ppe a re d a nd file with c o unty c le rk

 Mo ve to c o nfirm re po rt a nd dire c t distrib utio n

(sa mple inc lude d)



E sse ntia lly sa me a s prio r mo tio n with e xhib its fro m he a ring



I nc lude re fe re e ’ s re po rt



I nc lude pro po se d o rde r fo r distrib utio n (sa mple inc lude d)

PO ST

• HE

ARING

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

Applic a tio n fo r Ce rtific a te o f De po sit (c o mple te d prio r to no tic e o f c la im a nd mo tio n to c o nfirm re po rt o f sa le )



Administra tive F e e De duc tio n F

• rm



W-9



Ce rtific a te o f De po sit (o b ta ine d prio r to mo tio n to c o nfirm)



Ce rtifie d Co py o f Orde r F

• r Distrib utio n



DOF will no tify yo u whe n the c he c k is a va ila b le fo r pic k up



De live r in pe rso n o r b y ma il to :

NYC De pa rtme nt o f F ina nc e 66 Jo hn Stre e t, 2nd F lo o r, Windo w 5 Ne w Yo rk, NY 10038 Ho urs: Mo n to F ri, 9a m to 4:30pm

APPL ICAT ION T O DOF F OR DIST RIBUT ION