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Help for Homeowners
- Foreclosure Assistance - Help for Homeowners Facing Foreclosure.
- Find a Housing Counselor.
- If You Fall Behind.
- Know Your Options.
- Know Your Rights in Foreclosure.
- Settlement Conferences
- A Tenant's Rights in Foreclosure.
- Rent-To-Own and Installment Contracts.
- Renter's Insurance
- Basic Coverage and Adding Coverage.
- Force-Placed Insurance.
- Cancellations and Nonrenewals.
- Choosing a Policy.
- How Much Insurance Do You Need?
- Problems Obtaining Insurance.
- Flood Insurance.
- Understanding What Affects the Cost.
- Searching for Insurance.
- Managing and Mitigating Losses
Residential Foreclosure Actions Consumer Bill of Rights
This Residential Foreclosure Actions Consumer Bill of Rights offers guidance to homeowners facing foreclosure in New York. A foreclosure is a lawsuit, and property owners must look for support from an attorney or housing therapist in exploring potential legal defenses to the fit. Homeowners should also know their general rights and commitments highlighted listed below.
Throughout the Foreclosure Process
You can remain in your home and the responsibility to keep your residential or commercial property unless and till a court orders you to abandon. If you desert your home, the plaintiff (bank or mortgage servicer) may have the ability to foreclose on your residential or commercial property through an expedited procedure in court. To avoid this result, remain in your home and thoroughly evaluation and react to documents you receive from the complainant or the court in your foreclosure case. A failure to respond or appear in court when required to do so could make it much easier for the plaintiff to show that your residential or commercial property is uninhabited and deserted, which might put you at danger of an expedited foreclosure.
You have a right to be represented by a lawyer and may be qualified free of charge legal or housing therapy services.
You have a right to be devoid of harassment or foreclosure scams. Strongly think about talking to a lawyer or housing therapist, if available, before signing any papers. If you are the target of harassment or fraud, contact DFS by calling our Consumer Hotline at (800) 342-3736.
You have a right to prevent foreclosure if you repay your loan in full at any time prior to the sale of your home, or if you work out a settlement with the complainant.
Before a Foreclosure Action Begins in Court
You have a right to be informed at least 90 days before a foreclosure match is filed informing you that you remain in default and at danger of foreclosure. You can check out "loss mitigation" choices that might permit you to keep your home and avoid lawsuits. The bank or mortgage servicer is needed to help you comprehend your loss mitigation choices. If you have sent a completed loss mitigation application, your bank or mortgage servicer must complete its review of your application before proceeding with the foreclosure suit.
RPAPL § 1303 has actually been amended to require plaintiffs in foreclosure actions to offer a more particular and practical notification to customers concerning their rights and responsibilities during the foreclosure process. Specifically, the notice needs to show that property owners can remain in their homes till a foreclosure sale happens and the commitment to maintain their residential or commercial property and pay relevant taxes until such time. This section is intended to assist prevent residential or commercial properties from ending up being vacant in the very first location. Read the specific language required by RPAPL § 1303.
RPAPL § 1304 needs mortgage creditors to give borrowers a minimum of ninety days' notice before commencing a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") must include the following language: "Since ___, your mortgage is ___ days in default ... You can cure this default by making the payment of ___ dollars by ___." Unfortunately, debtors frequently translated this provision to imply that as long as the debtor supplied the specified quantity by the date specified, the loan would be renewed. Quite typically, the "remedy date" specified in the PFN is the earliest date on which the lender can begin a foreclosure action, which is 90 days after sending the PFN. When the debtor waits a complete 90 days to supply the amount defined, any missed out on payments and associated interest and costs from the intervening months would be contributed to the shortage. In such a case, the customer who sends the quantity stated in the PFN would remain in default due to intervening accruals, in spite of his/her good-faith efforts to resolve the default defined in the PFN.
The brand-new law addresses this problem by amending the very first line of the notification to read "As of ____ your mortgage is ____ days and ___ dollars in default." Similarly, it adds language to RPAPL § 1304 which highlights the borrower's ongoing rights and obligations throughout the foreclosure process. Read the new pre-foreclosure notification language.
Once a Foreclosure Action Begins
You can receive a copy of the legal documents in the foreclosure claim when it starts. This is referred to as "service" of the Summons and Complaint. You need to respond to the Summons and Complaint with an "Answer" within 20 days after you have been personally served, and within thirty days if served on you by other methods. The Answer is your chance to mention your defenses.
You ought to seek advice from a lawyer or housing counselor for aid in this process.
You have a responsibility to appear at all scheduled court appearances. If you stop working to appear, you risk losing essential rights, which could lead to the loss of the case and your home.
You have a right to request court approval to continue without paying court expenses.
At a Mandatory Settlement Conference
You have a right to an explanation of the nature of the foreclosure action versus you.
Both celebrations have an obligation to bring all essential files to the settlement conference. For a basic list of needed files, go to the Mandatory Settlement Conference details page.
Both celebrations should negotiate in "great faith", which implies honestly and fairly. If you stop working to do so, you might lose the chance to pursue a court-supervised settlement. If the bank or mortgage servicer fails to do so, the court might impose likewise substantial penalties. Negotiating in great faith does not require either party to settle.
If you previously stopped working to send an Answer, you will be given an extra 1 month to do so at the settlement conference.
After Settlement Agreement or Fully Executed Loss Mitigation Agreement
Within 90 days of finalizing a settlement, the lis pendens classification on your residential or commercial property, which alerts individuals that title to your residential or commercial property remains in disagreement, should be lifted.
You may be accountable for additional taxes if you reach a settlement that includes financial obligation forgiveness. Consult from a tax expert about any resulting tax repercussions.
After Judgment of Foreclosure and Sale
Upon a judgment of foreclosure and sale, the new owner can seek to evict you from the residential or commercial property.
If the home is resold for more than what you owe, you have a right to submit an application with the court for the surplus funds, subject to specific due dates. It is necessary to seek aid from a legal service company if you think you are owed a surplus.
If the home is cost less than what you owe, the lending institution may file an application for a judgment versus you for the difference, known as a shortage judgment. You may can contest the amount of any deficiency judgment, including interest and charges.
Get Help! Contact a Not-for-Profit Housing Counselor
Housing counselors that handle foreclosure-related problems can provide you suggestions on your choices and resources at little or no expense. They might also be able to negotiate with your loan provider totally free and assist you find free legal services in your location.
Housing therapy resources for New Yorkers consist of:
- New york city's Homeowner Protection Program (HOPP), which gets in touch with housing counselors and legal services at no cost. Call the HOPP hotline at (855) 466-3456 or go to homeownerhelpny.com.
- You can find a list of authorized non-profit housing therapists by county here, on the DFS website.
- 24-Hour help is offered toll-free on the HOPE NOW hotline at 888-995-HOPE (888-995-4673). HOPE NOW is an alliance of HUD approved counseling representatives, servicers, and investors that offer complimentary help.
- If you reside in New york city City, you can likewise call 311.
If you remain in a foreclosure lawsuit, you ought to seek advice from a lawyer.
Seek Legal Assistance
Contact an attorney and examine your mortgage documents. Ensure your loan is not in violation of any laws. If you do not have an attorney, the New york city State Bar Association may be able to refer you to an appropriate lawyer for your circumstance.
If you can not afford a private lawyer, resources for complimentary or low-priced legal assistance include:
- New York's Homeowner Protection Program (HOPP), which gets in touch with housing therapists and legal services at no cost. Call the HOPP hotline at (855) 466-3456 or visit homeownerhelpny.com.
- The New York City State Bar Association's Lawyer Referral and Information Service.
- The Legal Service Corporation site.
LawHelp.org, an online directory of complimentary legal company in New York.
