Are you considering buying an abandoned house or commercial property in NY?
If done properly, then it can be a great way to make a profit.
There are some important things you need to know first.
Find Abandoned Property | Buy Abandoned Property
Note: This article was last updated on Jan 20th, 2025.
Purchasing abandoned property in New York can be a unique investment opportunity with great profit potential.
This article provides you with valuable insights on how to acquire abandoned properties in New York.
What Do You Need to Know About New York’s Rules?
In New York, rules for buying abandoned houses are mentioned in the New York Abandoned Property Law. The law covers different situations, such as things left in rented places, cars that no one claims, and money that banks hold onto for someone.
Learning these rules will help you buy the right way and avoid problems.
The next step is to locate these abandoned properties.
So, where can you find these houses?
Tips to Find Abandoned Property in NY
Here are some proven tips for finding any New York abandoned house or property.
- Use the Internet and databases.
- Check out the New York State Department of Financial Services website. It has many abandoned houses throughout the state.
- Websites like Realtor.com or Zillow can also be helpful. Look for houses that are sold “as-is” or need extensive work.
- Read local newspapers:
- Sometimes, abandoned houses are advertised in the newspaper. They might be sold at auctions or because the owner couldn’t pay their mortgage.
- Explore Neighborhoods:
- Take a walk or drive around the area you’re interested in. Look for empty houses, such as those with boarded-up windows or overgrown yards.
- Talk to people in the neighborhood. They might know about houses that have been empty for a long time.
What to Do Next?
Once you find a property you’re interested in, you need to do some detective work and find out the owner’s details and property history.
Go to the county records office and find out who owns the house, whether there are any unpaid taxes, and whether there are legal claims against the property (these are called “liens”). You can also use the ACRIS NYC search portal to find these details.
It’s important to check everything carefully. You can consult a lawyer or real estate expert in the local county.
Steps to Buy Abandoned Property
Follow the steps below to purchase abandoned property in New York.
Step 1: Research abandoned properties
Start by looking at potential abandoned properties in your area of interest. Local newspapers, online classifieds, and county records are some of the easiest options to find these properties. Be prepared to put in some time and effort to locate the ideal property.
Step 2: Verify the property’s status
Before proceeding with any purchase, make sure the property is abandoned. Check with the county clerk, building department, and tax records to ensure no liens or other issues with the property.
Step 3: Consult the Department of Financial Services
New York properties deemed vacant or abandoned can be reported to the Department of Financial Services via their toll-free hotline (800-342-3736) or online complaint portal. Contact them for information on the property’s current status and any potential legal procedures.
Step 4: Contact the property owner
If the property is genuinely abandoned, contact the owner or their representative. This could lead to direct negotiations, saving time and unnecessary broker commissions.
Step 5: Secure financing
Before purchasing an abandoned property, it is important to secure proper financing. This includes working with traditional lenders like banks and credit unions or exploring specialized loans for abandoned properties.
Step 6: Follow standard real estate procedures
Abandoned or not, purchasing a property requires following the same procedures as buying any other real estate. Work with a reputable attorney and real estate agent to ensure the transaction goes smoothly.
Remember to be patient and thorough throughout this process, as locating and purchasing abandoned properties can be challenging.
Legal requirements to buy abandoned property
To legally buy abandoned property in New York, there are several key requirements and considerations:
- First, identify abandoned properties through methods, such as local government records, real estate listings, or physical inspections, as we discussed earlier.
- Verify the property’s ownership status and ensure it’s truly abandoned. This may involve checking with local authorities and conducting title searches.
- Legal Process: The specific process can vary but generally involves:
- Contacting the last known owner
- Filing a petition with the court
- Paying any outstanding taxes or liens
- Potentially going through a foreclosure process
- Time Requirements: In some cases, a settler who lives on the property openly and without permission can claim adverse possession if they do so for 10 years. This method is not recommended and comes with significant legal risks.
- Compliance with Abandoned Property Law: New York has specific laws governing abandoned property. It’s important to comply with the state’s Abandoned Property Law.
I recommend that you consult a professional after finishing your research.
Programs to acquire abandoned houses
Yes. The New York City Department of Housing Preservation and Development (HPD) offers Neighborhood Homes and HomeFix programs.
Neighborhood Homes and HomeFix programs aim to stabilize neighborhoods and assist individuals in purchasing abandoned properties. Many municipalities in New York State have land banks, which are public authorities working to acquire, manage and repurpose vacant properties.
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