Monday, March 28, 2016

What Is A Foreclosure Action?


There are many reasons why a homeowner is unable or otherwise stops making their monthly mortgage payment:

·      Laid-off from work, fired or unemployed.

·      Unable to work as a result of illness.

·      Unable to work as a result of family difficulties.

·      Job transfer to another state.

·      Excessive debt.

When a homeowner becomes late with their monthly mortgage payments, the lender or mortgage holder may contact them directly indicating that they intend to foreclose.  When a homeowner receives such a communication, it is important to contact a skilled foreclosure attorney, in order to discuss all of the options and possible solutions available to try and avoid foreclosure. 

A foreclosure is a legal process where a mortgage company or lender takes ownership of a home.  This process occurs if a homeowner does not make their required monthly payments.  The New York legislature [1] provides a listing of all applicable laws and regulations regarding foreclosure including the New York Real Property Action and Proceedings Law.  These laws can be difficult to understand and complicated to apply to your individual situation.  There are also federal laws [2]  that must be taken into consideration which complicates things even further making an attorney a valuable asset and ally to have during this process. 

According to the New York Department of Financial Services [3], if the mortgage is attached to a property where the individual lives, the lender must send a pre-foreclosure notice at least 90 days before beginning a foreclosure case.  If you receive such a notice, it is important to contact an attorney who handles foreclosure cases as soon as possible. This 90-day window will provide you and your attorney with time to try and negotiate an agreement with the lender and to look for an alternative to foreclosure. 

If an agreement is not reached with the lender during the 90-day window, the lender may file a Complaint to Foreclose which is a legal action filed against the homeowner.

With the process of foreclosure, the homeowner receives a legal notice and, in most cases, the notice is published in the local newspaper.  It is important to contact a lawyer as soon as you are served with a Complaint to discuss your options and to prepare a Response, where appropriate.  The sooner in this process that you begin to work with an attorney, the more options will be available to you to avoid foreclosure.

It is important to remember that even after a Complaint to Foreclose is filed, almost every state allows for a period of time for redemption where the homeowner can pay all of the missed principal payments, back interest and foreclosure costs in order to take back control of the property.  Further, a lender will always be willing to stop the foreclosure for the reinstatement amount (the full catch up) even after it accelerates and declares the whole loan balance due.  By contacting an attorney who is familiar with both New York and federal laws to discuss the specifics of your case you can best understand and protect both your rights and your home. Call the office of Ronald D. Weiss today at 631-402-5950.


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