Foreclosure – Frequently Asked Questions
New York Foreclosure Defense Attorneys
Q. What is foreclosure?
A. Foreclosure is the legal process by which a lender takes back the home from the homeowner to satisfy the mortgage. Foreclosure proceedings are usually initiated at some point after the homeowner is three months behind on his or her mortgage payments. At the end of foreclosure-process, the homeowners will have lost their home and the deed to their house will be in the name of the lender or such other person who purchases the property at an auction sale.
Q: What is the foreclosure legal process in the State of New York?
A: The foreclosure process in the State of New York begins with the bank or financial institution sending out letters and/or making phone calls advising you that you are behind in making your mortgage payments. If you do not bring your mortgage payments current, you then receive a letter notifying you the bank will be accelerating the note related to the mortgage within ninety days. This means the bank will be calling in the entire balance of the note involving all of the money you owe if you do not get your payments current in ninety days.
If you cannot bring your payments up to date, the financial institution will thereafter hire an attorney and serve a summons and complaint upon you. You will have twenty days to respond to the summons and complaint if served personally, and thirty days to respond if served through any other means. In the event you do not hire an attorney to defend yourself and submit an answer to the foreclosure complaint, you will have defaulted with regard to the foreclosure lawsuit. This will allow the financial institution to move against you without you having the ability to present a defense.
Q: When is a mortgage payment considered past due allowing the financial institution to bring a foreclosure proceeding?
A: Banks will generally not bring a foreclosure proceeding until mortgage payments are a minimum of three months behind. Some banks will wait until the mortgage payments are more than four to six months behind before they will initiate a foreclosure proceeding.
Q. If served with a foreclosure summons, what do I do?
A. You should immediately contact an experienced foreclosure defense lawyer. Do not wait! You have 20 days to submit a written answer to the foreclosure summons and complaint if you were served personally and 30 days to submit a written answer to the foreclosure complaint if served by any other means. A qualified experienced foreclosure defense lawyer can protect your rights and help you keep your home!
Q. Are there ways of avoiding foreclosure?
A. Yes. You can apply for a loan modification. You can also do a short sale, deed and in lieu foreclosure or file a bankruptcy.
Q. How will foreclosure affect my credit rating?
A. Foreclosure will have an extremely negative affect on your credit rating
Q. Can I delay the foreclosure from going forward?
A. Yes! If you hire an experienced foreclosure defense attorney he or she will submit an answer with affirmative defenses. The foreclosure defense lawyer will also file discovery demands, make motions and respond to motions made by the foreclosing financial institutions attorneys.
You may file for adjournments to delay the procedure from going forward. Experienced foreclosure defense attorneys know how to utilize the legal system to allow their clients to stay in their homes for as long as possible. You can also file for bankruptcy. Bankruptcy proceedings immediately freeze all foreclosure-proceedings and prevent them from going forward during the pendency of the bankruptcy.
Q. What happens to my house in a foreclosure proceeding?
A. In the event the lender is successful at the end of the foreclosure-proceeding, your house will be sold at auction or the lender will take back the title to you home.
Q. Can I stay in my home after it is sold if foreclosure or the lender takes the title back?
A. You can stay in your home if the lender or the new owner wishes to enter into a rental agreement with you. If the lender of new owner does not want to enter into a rental agreement with you, they will commence an eviction proceeding in Landord/Tenant Court for the purpose of having you removed from your home.
Even if an eviction proceeding is brought against you, competent eviction defense attorneys can fight the eviction process for a considerable period of time.
Q. At the end of the foreclosure, will I owe the financial institution any money?
A. Possibly. In the event the house is sold at foreclosure for less than you owe the financial institution, they can obtain a deficiency judgment against you for the unpaid portion of your mortgage loan. A bankruptcy proceeding can be initiated to discharge this deficiency judgment.
Q. What happens if the house is sold for more than I owe in the foreclosure proceeding?
A. In the event there is money left over from the sale of your home after the foreclosure and all expenses related to the foreclosure are paid off, the court will hold a hearing to determine how much money will be returned to you.
Q. Who sells my house in foreclosure proceedings?
A. In most situations, the court appoints a referee to handle the sale of your home.
Q. What do I do after being served with a foreclosure Summons & Complaint?
A. Hire an experienced and New York and Long Island Foreclosure Defense Law Firm. It is extremely important to hire an attorney to protect your rights and advise you how to deal with the various stages and circumstances involved in these proceedings.
The foreclosure defense attorneys at the Law Offices of Schlissel DeCorpo are available seven days a week to help you during this difficult period of time. We have defended numerous foreclosure proceedings during the past thirty years.
We are available to explain the process, keep our clients informed and help you during this difficult time. Feel free to call us at 718-350-2802, 516-561-6645, or 800-344-6431 or e-mail the New York and Long Island Foreclosure Defense Attorneys at the Law Offices of Schlissel DeCorpo. We can help you!
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