Legal Question in Real Estate Law in New York

Re: NYS Foreclosed home.

I am assuming that the first lienholder was the plaintiff in the foreclosure auction. Once the auction is complete and the property is sold to the highest bidder, the junior liens (i.e., the 2nd and 3rd mortgages) are wiped out. The debt is still owed to you (and the 2nd mortgagee), but the collateral is now gone (meaning you have nothing to foreclose against).

You can absolutely approach the bank that foreclosed to purchase the property from them (if they were the successful bidder at the auction). That bank is not required to sell to you. It's entirely up to them. And now that they own it, they can sell it for whatever amount they choose.

If you do buy the property, your mortgage is not revived, so only approach the bank if you truly want to own the property.

Your only recourse against the borrower is to sue them for the monies owed to you under the note.