As top bankruptcy attorneys on Long Island, we specialize in helping families find alternatives to foreclosure. If you’re on the brink of losing your home, remember you have other options. Contact us online to schedule a free consultation with one of our compassionate lawyers today.
It’s every homeowner’s worst nightmare: After years of saving for a down payment and then diligently paying your mortgage, hard times have landed you in foreclosure. No matter how much you work, you just can’t seem to catch up.
Now, out of options, you’re feeling panicked, ashamed and unsure of what will happen to your family. But what if you weren’t actually out of options?
At Jacoby & Jacoby, we’ve met with countless people facing foreclosure, and the vast majority of them don’t understand that they have recourse. If your home is facing foreclosure, don’t lose hope—there are many viable alternatives that we can help you explore, from powerful legal defenses to filing for bankruptcy.
Keep reading to learn about the foreclosure process in New York, possible defenses and how we may be able to safeguard your future.
Need foreclosure assistance now? Don’t let your options slip away by waiting too long for help. Call our law office toll-free at (888) 452-2629 to schedule a free case evaluation with one of our skilled bankruptcy attorneys.
Understanding the Foreclosure Process in New York
Between inflation and a slow-recovering economy, it’s no surprise that many Long Island residents are facing mortgage delinquency. As foreclosure cases continue to clog the court system, you may have more options to save your home than you realize.
The New York foreclosure process requires lenders to sue homeowners for the right to auction their homes, which gives you an indeterminate amount of time to develop your foreclosure defense. In contrast to states which only allow homeowners 30 days to pay arrears if they’ve missed three mortgage payments, the New York foreclosure process can take years.
What to Expect During Pre-Foreclosure
Pre-foreclosure is the first phase in the foreclosure process, which if carried out, can result in your home being put up for auction. Several things need to occur during this phase in order for your home to actually be auctioned, so if this is your current situation, you still have time to square things away.
If you’ve only had one or two late payments, it’s unlikely that you have anything to worry about yet. However, if you get more than 90 days behind on your mortgage payment, your lender may send you a breach letter warning you that your loan is in default. This notice will tell you how much time you have to reverse your default and reinstate your loan, typically between 30 and 90 days. Your lender must also file a pre-foreclosure notice at least 90 days before filing a lawsuit.
Following issuance of the breach letter a homeowner will be issued a pre-foreclosure notice which is then followed by a summons and complaint in about 90 days. Once a homeowner is served with the summons and complaint they will then have the opportunity to respond and present their defense.
Possible Defenses to Foreclosure
There are certain circumstances in which you may be able to avoid foreclosure with the right defense argument. Your lawyer can help you determine if any of the following defenses are applicable to your situation:
- Your lender can’t produce the original promissory note and terms of the mortgage.
- Your lender didn’t deliver your foreclosure-related documents in the proper manner.
- You were subjected to illegal or discriminatory practices during your home’s sales and closing process.
- The court’s documents are incorrect in saying you haven’t paid your arrears.
- You didn’t have a chance to pay your past-due balance before the bank initiated the foreclosure action.
- You’re an active service member, which means you qualify for stays that protect you from the foreclosure process.
- You (or the owner) weren’t mentally fit when the mortgage was signed.
Even if you don’t qualify for one of these defenses, you may still be able to save your home. Your attorney can help you explore further alternatives to foreclosure, including bankruptcy.
Declaring Bankruptcy Can Save Your Home
There’s a lot of stigma surrounding bankruptcy, and your creditors would prefer to keep it that way. The reality is that declaring bankruptcy can be a life-saving strategy in a variety of situations, including foreclosure.
Chapter 7 Bankruptcy
Chapter 7 is the most common type of bankruptcy, and it offers specific advantages for those facing foreclosure. Specifically, filing for Chapter 7 Bankruptcy will instantly halt the foreclosure for the duration of your case. However, during this time you will need to resume your monthly payments and cure any outstanding arrears. If not the lender will be able to resume the foreclosure process once your case has concluded.
Chapter 13 Bankruptcy
With help from a Chapter 13 bankruptcy attorney, you may be able to save your home from foreclosure. By filing under Chapter 13, you not only halt foreclosure proceedings, but also may be able to cure delinquent mortgage payments over time. However, you will still need to make the mortgage payments that come due during your Chapter 13 plan on time.
Declaring bankruptcy under Chapter 13 also allows you other benefits. You may be able to restructure secured debts (other than your mortgage) over the lifetime of your plan and even lower your payments. Getting started is simple; a Long Island bankruptcy attorney can help you navigate the filing process.
Jacoby & Jacoby: Top Foreclosure Defense Attorneys Serving Long Island, New York
The threat of foreclosure can leave anyone feeling hopeless. However, there are myriad options at your disposal when you work with an experienced Long Island bankruptcy attorney.
At Jacoby & Jacoby, we’ve built our careers on helping individuals and families avoid foreclosure with the legal protections afforded by bankruptcy. Regardless of your financial situation, you have viable options that will allow you to keep your home, and we can help you find them.
Getting started is as easy as contacting our law office to schedule a free consultation. Visit us online or give us a call, toll-free, at (888) 452-2629 to speak with one of our bankruptcy experts.