Timeline of a New York Foreclosure

A report published by the state Department of Financial Services¹ indicates that New York has one of the longest foreclosure timelines in the United States at an average of 934 days. This means that many homeowners must live in fear and uncertainty regarding their home ownership status for nearly three years before their case is resolved. During this time, homeowners face many confusing and complex stages of the foreclosure case and may not realize all of their rights and possible legal defenses applicable in their case.

The following is a brief overview of the foreclosure process in New York. For more specific information, do not hesitate to consult with an experienced foreclosure attorney today.

^·          Notice of breach of the mortgage contract – This notice must inform the property owner of options on how they can cure the default and avoid foreclosure, as well as housing counseling agencies in the area. If the owner occupies the property, this notice must be sent at least 90 days prior to a foreclosure action is filed.

^·          Filing of a foreclosure action with the court – This can happen as soon as 90 days after issuing you notice, however, many mortgage lenders delay the filing for a variety of reasons. The lender cannot delay indefinitely, as they only have six years to do so in accordance with the New York statute of limitations.

^·          Filing of Service of Process – You may be served with notice of the foreclosure action in person, by mail, or by another method. Depending on the method of service, you will only have 20 or 30 days to respond with a legal answer to the foreclosure so time is of the essence.

^·          First Mandatory Settlement Conference² – New York requires that the first settlement conference take place within 60 days of filing. However, if you cannot reach an agreement, the evidence-gathering and negotiations stage may take a long period of time. Additionally, because of the significant backlog of foreclosure cases in New York courts, cases may be continued numerous times before they reach trial or any other type of resolution is reached.

^·          Motion for Reference OR Motion for Summary Judgment – If the defendant has not answered the summons and complaint, the plaintiff would file a motion for an order of reference, where the plaintiff just tries to show the Court that the bank is on a technical basis entitled to relief; if the defendant has answered the summons and complaint, the plaintiff would file a motion for summary judgment where it tries to persuade the Court to decide any contested issues in favor of the bank. Either motion is made after the foreclosure conferences are discontinued and effectively are made in most cases a year or more after the foreclosure action had started. The effect of an Order being granted for either motion is that the Court would appoint a referee to compute the amount owed to the bank and to conduct any foreclosure sale.

^·          Judgment of Foreclosure and Sale entered and auction of the property – This is the final stage of the foreclosure case and can happen as long as three years after the initial filing in New York. Until this judgment is entered, you still have legal options to save your home.

Throughout this period of time, you will have many different opportunities to have your attorney negotiate with your mortgage lender to find a possible alternative solution to foreclosure. For example, your lawyer can discuss the possibility of loan modification, short sale, deed in lieu of foreclosure, and more to help you either catch up with your payments or minimize the losses you incur as a result of the foreclosure action. If you come to such an agreement, the foreclosure process may be significantly shortened.

Discuss your case with an experienced foreclosure attorney as soon as possible

The foreclosure process in New York can be long and arduous. However, with the help of a skilled foreclosure lawyer, you can expect the best result possible in your case. An attorney will handle every step of your case so that you do not have to put your life on hold for months or even years. If you have received notice of a foreclosure or are seeking options to catch up with your mortgage payments, call the law office of Ronald D. Weiss, P.C. at 631-296-0912 for assistance.

http://www.ny-bankruptcy.com/services/foreclosure-solutions/foreclosure-defense/

Reference:

¹http://www.dfs.ny.gov/reportpub/fore_proc_report_052015.pdf

²https://www.nycourts.gov/litigants/foreclosures_overview.shtml