Learn the New York Foreclosure Processes:

Step 3: REOs: Back to the Bank

If no one at the auction bids the Plaintiff's minimum (or the "upset price") the property reverts back to the plaintiff. The referee executes a deed conveying ownership of the property back to the plaintiff. If the Plaintiff is a bank or mortgage company, the property then becomes part of the lender's inventory of homes, and is referred to as an R.E.O. (Real Estate Owned). Most lenders then farm out their inventory of homes to local real estate brokers for resale. These are the types of properties that are often advertised by real estate agents as "foreclosures".

This is the easiest, but most expensive way to buy foreclosures. While you will often find prices near market value, the lender is usually willing to correct any major problems with the property including removal of any code violations.