As a homeowner, when you get behind on your mortgage payments, you may be at risk of foreclosure by your bank or mortgage lender. Understanding how the foreclosure process works in New York will be essential so you can protect your financial future, retain possession of your home, and clear your financial name.
Our leading New York bankruptcy attorneys at Jacoby and Jacoby can help you prepare for your foreclosure and protect your interests. You do not have to go through this complex experience on your own.
When you have additional questions about how foreclosure works or what to expect from the foreclosure process, you can get help in a matter of minutes by contacting Jacoby and Jacoby by phone at 888-452-2629 or online at longislandbankruptcycenter.com to schedule your free bankruptcy case evaluation with New York’s No. 1 bankruptcy filer.
A Rundown of the New York State Foreclosure Process
If your home is at risk for foreclosure or the bank has already begun the foreclosure process, it is important to understand what you can expect moving forward. It is important to note that every person’s case is different, but here is a general idea of what you can expect if you are going through foreclosure in the state of New York:
- First, your lender will provide you with information on how to avoid foreclosure within 90 days of your missed mortgage payment
- You can work with your lender to come to an agreement at any time after you have received your pre-foreclosure notice to avoid going through the foreclosure process Your case may need to go to court if you are hoping to avoid foreclosure and retain possession of your home
- If you do not answer the foreclosure notice sent to you, your mortgage lender will ask the court for a default judgment who will then determine how much you’ll owe to the lender Your lender will then ask the court to accept the Referee’s findings of how much you owe to the lender
- Then, the judge will then how much you owe your lender to cover your outstanding mortgage payments
- You may be at risk for having your home sold at auction, which may be for more or less than what you still owe to the lender
It is important to note that this is just a basic idea of how the foreclosure process works. There are many details in between that will apply to specific circumstances. If you are interested in finding out more about what you can expect from the foreclosure process in your case, your best option is going to be to contact our bankruptcy attorneys to discuss your financial troubles.
What Are Your Foreclosure Rights?
Under State and Federal laws, there are several rights you have when interacting with loan services and lenders. Servicers have an obligation to provide you with an opportunity to get out of debt and avoid foreclosure.
As part of your promissory note and mortgage agreements, you will have specific rights before your lender can move forward with the foreclosure of your home. These rights include:
- The right to receive a breach letter
- The right to receive one or more pre-foreclosure notices
- The right to attend a settlement conference with your lender
- The right to receive notice of the foreclosure
- The right to respond to foreclosure notices
- The right to stop the foreclosure sale and get current on your loan payments
- The right to pay off your mortgage and prevent the sale of your home
- The right to declare bankruptcy and retain possession of your home
- The right to special protections if you are a military service member
These are just a few of the rights you will have if you are behind on your mortgage payments in the State of New York. Understanding what your options are and how to get current on payments is crucial in avoiding foreclosure. The Bankruptcy attorneys at Jacoby and Jacoby can help mitigate the situation and potentially save your home.
How to Avoid Foreclosure in New York
If you are hoping to avoid going forward with foreclosure, there are certain steps you can take. These options include:
- Reinstating your mortgage – Under N.Y. Real Prop. Acts. Law§ 1·341, you have the opportunity to reinstate your mortgage prior to a judge making a final judgment in your case. However, if a final judgment has been made you do still have the opportunity to cure the outstanding arrears prior to your home being sold.
- Redeeming your home before it is sold – To redeem the property means you have paid off the full amount of your mortgage. You have the right to do this at any time before your home is sold as part of your foreclosure.
- Declaring bankruptcy – When you file for bankruptcy you are immediately granted protection from a foreclosure by what is known as the automatic stay. This means that the lender will temporarily be halted from moving forward with the foreclosure.
- Loan modification – If your lender is willing to modify the terms of your loan, you may also be able to avoid moving forward with the foreclosure process. Expect to be required to get current on your payments before your lender is willing to modify your loan agreement.
Contact New York’s Top Bankruptcy Attorney for Help Today
Although foreclosures can be overwhelming and complex, when you have a knowledgeable and experienced bankruptcy attorney working on your case, you can get answers, address your financial situation, and potentially avoid the foreclosure of your home.
Find out what’s next for your impending foreclosure when you reach out to New York’s leading bankruptcy attorneys at Jacoby & Jacoby. Fill out our confidential contact form at longislandbankruptcycenter.com or call our office at 888-452-2629 to start working on your bankruptcy or foreclosure case as soon as today.