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Guide to Foreclosures in New York

1.  Before Court

90-Day Warning Letter

  • If you miss mortgage payments, your lender must send you a special letter at least 90 days before starting foreclosure.

  • This letter must be in big, clear print and include a list of at least five local housing counselors who can help you.

  • This gives you time to find help and try to fix the problem.

Notice of Default

  • Your lender might also send another letter saying you have 30 days to catch up on payments.

  • Both letters are important. If your lender doesn't send them the right way, the court might stop the foreclosure.

Legal Paperwork

  • Before going to court, your lender's lawyer must sign papers saying everything is correct.

  • If the home is empty, the lender must tell the local government.

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2.  Steps in the Foreclosure Process

Court Case Begins

  • The lender files a lawsuit and sends you papers called a "Summons and Complaint."

  • You have 20 to 30 days to respond. If you don't, the court might let the lender take your home.

  • With the court papers, you should get a paper that explains your rights, like staying in your home until it's sold.

  • If this happens, call LASMNY at (315) 793-7083. We may be able to represent you!

Your Response

  • You can file an "Answer" to explain your side and point out any mistakes or legal defenses. 

  • Defenses might include:

    • The lender doesn't own your loan or didn't follow the rules.

    • The lender waited too long to foreclose.

  • This can help you stay in your home longer and maybe stop the foreclosure.

 Settlement Conference

  • The court will set up a meeting to see if you and the lender can agree on a way to avoid foreclosure.

  • This meeting must happen within 60 days after the court papers are filed.

  • You can ask for more time if you need to gather documents or talk to a lawyer.

Court Decision

  • If you can't reach an agreement, the lender might ask the court to decide without a trial.

  • If the court agrees, it will order your home to be sold.

Home Sale

  • A referee calculates how much you owe.

  • The sale is advertised for at least 4 weeks.

  • Your home is then sold at a public auction.

  • You can still pay what you owe and keep your home until the auction ends.

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3.  Ways to Avoid Losing Your Home

Loan Modification

  • You might be able to change your loan to make payments easier.

  • This could mean lower interest rates or more time to pay.

 Forbearance

  • You might get a break from payments for a while.

  • After the break, you'll need to pay back the missed amounts.

Short Sale or Deed-in-Lieu

  • If you can't keep your home, you might sell it for less than you owe or give it back to the lender.

  • Sometimes, the lender won't ask for the rest of the money you owe.

Bankruptcy

  • Filing for bankruptcy can stop foreclosure and give you time to catch up on payments.

  • New York law protects some of your home's value.

Protection from Scams

  • It's illegal for people to trick you into giving up your home.

  • You have the right to cancel certain contracts related to foreclosure help.

 

4. After Foreclosure

Redemption

  • You can pay what you owe and keep your home until it's sold at auction.

  • After the sale, you can't get your home back.

Eviction

  • The new owner must give you a 10-day notice to leave.

  • If you don't leave, they must go to court to evict you.

  • This process can take 3 to 6 months.

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If you're facing foreclosure, it's important to get help right away. Many people have saved their homes by getting help early and using the protections available in New York. Please call us at (315) 793-7083.

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