As of February 1, 2007, certain sales of homes that are in foreclosure or default are now governed by a New York State law known as the Home Equity Theft Prevention Act.
If your home is in foreclosure or default and you are planning to sell it, you should be aware of your rights under this law, and know what to expect from a legitimate buyer.
If your sale is protected by the law, and the buyer fails to fulfill any of the requirements listed below you may be able to void or legally cancel the contract you have with the buyer and the sale, even after it has been signed and executed. You may also be able to sue the buyer to recover any damages.
More information about the law can be found here.
Not all sales of properties subject to foreclosure fall under this law. However, if the sale you are considering falls under the Act, you should not enter into any agreement without first contacting a qualified attorney to give you information about your rights, options and other resources you should consider.
