If you’ve gotten a notice that your house in Kingston, Saugerties, New Paltz, Ellenville, Shandaken or anywhere else in Ulster County could end up at a foreclosure auction, it’s normal to feel like the decision has already been made for you. Usually it hasn’t. Until the gavel falls (or the online bidding closes), most owners still have options, and one of them is selling the house yourself so that any equity goes to you instead of being decided by an auction.
The first step is understanding which kind of auction you’re actually facing, because Ulster County has two very different ones.
This is general information, not legal advice. If you’ve received foreclosure papers, talk to an attorney or a free housing counselor right away.
First, Figure Out Which Kind of Auction You’re Facing
A tax foreclosure auction happens when property taxes go unpaid. Ulster County’s Department of Finance forecloses on those parcels under Article 11 of New York’s Real Property Tax Law, takes title, and then sells them at a public auction.
A mortgage foreclosure auction happens when a lender wins a foreclosure lawsuit in New York State Supreme Court. A court-appointed referee then sells the house, and in Ulster County those sales are held at the Ulster County Courthouse, 285 Wall Street in Kingston.
Look at who sent the papers. If they came from the county’s Department of Finance or mention "in rem" and tax liens, it’s a tax foreclosure. If they came from a bank’s law firm and name a plaintiff, an index number and a referee, it’s a mortgage foreclosure. Some owners face both.
The County Tax Foreclosure Auction
Redemption: Your Window to Pay and Keep the House
New York’s tax foreclosure process gives owners a redemption period, a window to pay the delinquent taxes plus interest and charges and keep the property. Under state law the default period runs two years from the lien date, unless the published foreclosure notice sets a later date. The notice of foreclosure for your parcel is the document that tells you your actual deadline, so find it and read it closely.
The Ulster County Legislature also passes resolutions that let the Commissioner of Finance accept late redemption payments with added fees. For example, a July 2026 resolution for the 2024 tax foreclosure proceeding set its redemption deadline at March 24, 2027, allowed late redemption with a $100 fee up to the date the county takes title, and, after that, allowed a buy-back up to 5 PM on the Friday before the auction with a further $250 fee plus recording costs, all subject to the Legislature’s approval. Those amounts and dates apply to that proceeding only, so confirm the terms for your parcel with the Department of Finance.
After the County Takes Title
Once redemption runs out and the court signs a judgment, the county owns the property. At that point you are no longer the owner, and you generally can’t sell the house to anyone. Whatever is still possible goes through the county’s buy-back rules, if they’re offered. That’s why the time to sell is before the county takes title, while you still hold the deed.
The Online Auction
Ulster County now sells tax-foreclosed properties at an online-only auction run by an outside auctioneer. The 2026 auction ran September 8 to 10, 2026, through Absolute Auctions & Realty, with registration closing on September 8. The county’s comptroller has also reported that no auction was held in 2023 or 2025 while the county adjusted to changes in state law. So the schedule isn’t the same every year. Don’t assume you have more time than you do; ask the Department of Finance where your parcel stands.
What Happens to Any Leftover Money
After a 2023 U.S. Supreme Court decision (Tyler v. Hennepin County), New York changed its law so that former owners can claim surplus, meaning the auction price minus the taxes, interest, penalties and charges owed. Within 45 days of the sale, the county determines whether there’s a surplus and notifies the former owner. Claims go through the court, and Ulster County posts instructions and sample claim forms on its Foreclosures and Tax Auctions page.
That’s real protection, but it has limits. For a public auction, state law treats the winning bid as the property’s full value, even if the house would have sold for more on the open market. And claiming surplus means court paperwork and waiting. Selling the house yourself before the county takes title lets you set the price and get your equity at closing.
The Mortgage Foreclosure Auction at the Courthouse
Mortgage foreclosures follow New York’s judicial process: a 90-day pre-foreclosure notice, a lawsuit in Supreme Court, usually a settlement conference for owner-occupied homes, and then a judgment of foreclosure and sale. We walk through those steps in our post on foreclosure in Orange County, NY; the state process is the same in Ulster.
What’s specific here is where it ends. Ulster County referee sales are held at the Ulster County Courthouse, 285 Wall Street, Kingston, and the published notices name the date, time and spot in the building. Notices are run in local papers ahead of the sale, and sales are sometimes postponed or canceled, so check with the plaintiff’s attorney or your own attorney for the current date. You can look up your case through the Ulster County Clerk’s records using the index number on your papers.
Until the referee’s sale actually happens, you can usually still sell the house, pay off the loan at closing and keep what’s left.
Why Selling Before the Sale Date Usually Beats Waiting
- You control the price. At auction, the house goes for whatever the highest bidder offers.
- Your equity comes to you at closing, not through a later surplus claim.
- You choose your move-out date instead of working around an auction and possible eviction afterward.
Your Options Before the Auction
Pay the Taxes or Catch Up the Loan
If you can pay what’s owed, redemption (for taxes) or reinstatement and a loan modification (for a mortgage) lets you keep the house. Free help is available: HUD-approved housing counselors and New York’s Homeowner Protection Program (HOPP) connect homeowners with free counseling and legal services. Ulster County’s foreclosure page also links to help for homeowners facing foreclosure.
List the House With an Agent
If you have time before your deadline and the house shows reasonably well, listing with a licensed real estate agent will often get the highest price. The trade-offs are time for prep, showings and a buyer’s financing, which all have to fit before the auction date. If you’d like a referral, licensed brokerage work for our clients goes through Samantha McCrory at EXIT Realty.
Short Sale
If you owe the lender more than the house is worth, the lender may agree to accept less than the full balance. Short sales need the lender’s approval and can be slow, so start as early as possible.
Sell As-Is to a Cash Buyer
When the deadline is close, the house needs work, or you can’t face showings, a cash sale can close on your timeline:
- No repairs, clean-out or showings.
- No buyer financing to fall through.
- Back taxes or the mortgage payoff come out of the proceeds at closing, and any remaining equity is yours.
The trade-off is that a cash offer reflects the house’s condition and the speed you need. Compare every offer against your payoff or tax redemption amount so you know exactly what you’d walk away with.
Protect Yourself When You Sell
New York’s Home Equity Theft Prevention Act protects homeowners who sell a home that’s in foreclosure, including a home on an active property tax lien sale list, to an investor. It requires specific written contract terms and gives you a right to cancel within a set period after signing. A legitimate buyer will follow it without being asked. Be very careful with any deal where you sign over the deed and "rent it back," or where someone asks for upfront fees to save the house. Have an attorney review the contract before you sign.
Talk to a Local Buyer Before the Auction
Hudson Valley Cash Buyers buys houses throughout Ulster County, including Kingston and New Paltz, as-is and in any condition. If you’re up against a tax or mortgage auction date, we can give you a straightforward number and work with your attorney and your deadline. If keeping the house or listing it makes more sense for you, we’ll say so. You can also read more on our stop foreclosure page.
Request a no-obligation cash offer or call (845) 490-5694.
This article is general information and is not legal or tax advice. Foreclosure deadlines and redemption terms vary by property and proceeding. Speak with a New York attorney or a HUD-approved housing counselor about your situation, and confirm your parcel’s status with the Ulster County Department of Finance.