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

3 Important Questions To Ask Your New York Loan Modification Lawyer

When a homeowner falls behind on his or her mortgage payments, they may be facing the loss of their home through the legal process known as foreclosure. There are several ways to avoid foreclosure, including pursuing a loan modification with your mortgage lender, which involves modifying the terms of your mortgage contract in a way that makes it easier to make your payments and allows you to keep your home. Importantly, modifying a contract can require significant negotiation, so it is highly advisable for anyone seeking a loan modification to talk to an experienced lawyer.

When you first meet with an attorney, there are some questions that you should ask. Some of the most important are discussed below.

What are my options?

Loan modification is just one of several ways that you may be able to avoid foreclosure. In addition to modifying the terms of your mortgage contract, bankruptcy and foreclosure defense may be able to help. Some basic information about each is discussed below:

• Negotiations – A mortgage modification is one out of several negotiations that a defendant can seek in a foreclosure matter. Other agreements sought are: short sales, forbearance agreements, deed in lieu agreements, short payoff agreements, agreements to allow a voluntary sale etc. However, by far the most sought agreement with the lender is a modification since it would usually allow the borrower to remain at the property and to cure and reorganize the mortgage loan.

·         Bankruptcy – Both Chapter 7 and Chapter 13 bankruptcy can halt foreclosure proceedings due to the protections offered by the automatic stay, which is an injunction that immediately stops any collection activity the moment a bankruptcy is filed. Furthermore, Chapter 13 often allows homeowners to restructure their loan in such a way as to stay in their homes as long as long as they keep up with their court-approved payment plan.

·         Foreclosure defense – There are often several ways in which a homeowner can directly defend against a foreclosure action, including drawing attention to procedural defects in the way the case was brought, inability to establish ownership of the mortgage, or fraudulent mortgage lending practices.

How long will the process take?

Foreclosure is a very time-sensitive issue. In many cases, a lender files a foreclosure action as soon as they are legally able to do so. For this reason, it is important to keep your attorney fully apprised of your situation and determine how much time you may have to pursue a loan modification.

What are the costs associated with loan modification?

Some attorneys operate on a flat-fee basis for loan modification services while others bill their clients hourly. Still others may base their attorney’s fees on obtaining a certain result for their clients. You should determine which way your potential attorney charges legal fees and obtain an estimate for the total cost of loan modification representation.

Contact a Long Island foreclosure lawyer today to discuss your situation

Individuals who are facing foreclosure should talk to an experienced lawyer as soon as possible. In many instances, the help of an attorney can help people keep their homes and modify their loan in a way that makes keeping up with their payments significantly easier. To schedule a free consultation with Long Island foreclosure attorney Ronald D. Weiss, call our office today at 631-296-0912 or send us an email through our online contact form.

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

References:

¹ http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics

² http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics