Foreclosure Process in New York
If you live in New York and are facing a foreclosure or are in the process of foreclosure, do not give up hope of keeping your home. The foreclosure process is New York is lengthy, taking generally 445 days, or 15 months, from the date the owner misses the first mortgage payment to the foreclosed sale of the home. Throughout this period, lender or loan servicers must file and send the proper paperwork, giving the homeowner plenty of time to find alternative and viable options to regaining control of the process. Of course, the first step to circumventing foreclosure is to thoroughly understand the foreclosure process in New York
It Begins
The foreclosure process begins on the first day a mortgage payment is missed. Lender and loan servicers are quick to react to even the owner’s first missed payment, and within thirty days of a missed payment the company processing your mortgage payments will send you a notice with a late charge.
Pre-Foreclosure Processes
If you are living in the home, the lender or loan servicers is required to send you a pre-foreclosure notice 90 days before they can begin the foreclosure process in New York. This notice must list the amount necessary to bring the loan current and provide the names and phone numbers for a minimum of five government approved non-profits oriented around providing house counseling services.
It is vital for the struggling owner to capitalize on this given information and the 90-day grace window. This is a great time to meet with expert legal advisers in order to understand the available options. Legal advisers can help the owner work with mortgage lenders in order to find the best alternative, whether it be loan restructuring or modification.
The Foreclosure Itself
After the 90-day window has expired, the loan or lender servicer will prepare the legal action necessary for foreclosure. This can take anywhere from seven to nine months and involves referring the loan to its foreclosure department, selecting an attorney to initiate the proceedings against the owner, recording the formal notice with the court, and, finally, servicing the owner the notice via a summons and complaint. The court will not be involved with the foreclosure process until a request is made by the mortgage company’s assigned law firm for judicial intervention.
Once the judicial intervention request is made, the court will schedule a settlement conference within 60 days. During this period, you can meet with the lender’s representatives to seek an amiable resolution. If you choose not to respond to the lender’s summons and complaint, the court will rule against you, immediately scheduling a foreclosure sale. If you do respond, you will be able to provide evidence regarding the foreclosure case. It will then be up to the court to either rule in your favor, or against your favor thus also initiating the scheduling of a foreclosure sale.
This final foreclosure process in New York is generally taken care of by the county courthouse. The sale of the mortgaged property generally takes place around four months after the court ruling; its notice of sale published weekly in the month preceding the sale. Foreclosed homes in New York are generally sold through public auction; the property going to the highest bidder.
If you or a loved one are facing this foreclosure process in New York, whether it is because of drops in property values, sudden increases in interest rates, or because of a hardship such as a loss of wages, illness, or death in the family, seeking professional counsel can significantly improve your chances on keeping the ownership title to your mortgaged-property. Loan modifications and restructuring combined with the fighting of foreclosure lawsuits can mean the difference between keeping and losing a home. Don’t risk your investment, seek professional counsel today and take control of the foreclosure process in New York.
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