The state of New York highly recommends that homeowners who are facing a foreclosure know their legal rights and that they fully understand the foreclosure process in New York. The period of time can be very stressful for a homeowners, and if they want to improve their chances of saving their home, they need to know all of the laws, their rights, and the process.
Mandatory settlement conference - Back in 2010 the state court system established a new law that mandates that banks and lenders schedule a foreclosure settlement conference or mediation session between the lender and the homeowners. The court will handle this activity, and the process requires that the local court needs to schedule a foreclosure settlement conference within 60 days after the lender files proof of service of the complaint in all foreclosure actions involving a home loan. What this does is ensure that there is an opportunity for the homeowner and the lender to come to as agreement. The agreement will tend to benefit both parties. Learn more on the New York settlement conference.
New York is a judicial foreclosure state - What this means is that your bank, mortgage servicer or lender must go to court and follow all state laws, formal processes and regulations in order for the lender to foreclosure on your home. New York homeowners may be able to delay the process and stay in their homes, as the foreclosure process in New York currently takes almost 450 days (or over one year!) from the date of the first missed payment to the sale of the home after a judgment of foreclosure from the court system. However it is important to remember that your can be sold at an auction if you fail to appear in front of the county and if you do not answer the foreclosure action, negotiate a settlement, or mediate a solution or if you lose the foreclosure action.
Home Equity Theft Protection Act (HETPA) - This law was created to protect homeowners. The HETPA regulation will help protect New York homeowners who may be in a default situation, or who are facing a foreclosure. This will help them deal with illegal scams involving investors who offer to purchase their home for some certain price. HETPA will ensure that families and individuals have the right to a detailed contract and the right to cancel that contract within five business days.
Pre-foreclosure notice - This law ensures that communication occurs, and that plenty of advance notice is provided as part of the foreclosure process. The bank, lender or loan servicer must give all homeowners in the state at least 90 days of notice before commencing the foreclosure process. So this 90-day window of time, especially when combined with the settlement conference indicated above, gives borrowers plenty of opportunity to try to work with their lender to find an alternative to foreclosure and provides them time to review all mortgage assistance programs. The notice that is provided by your lender will need to tell the borrower how much the homeowner needs to to pay to bring the home loan current. In addition, these pre-foreclosure notice will need to give the homeowner the names, addresses and telephone numbers of at least five government-approved not-for-profit New York housing counseling agencies that are located in your part of the state. Or click here to find a listing of housing agencies.
To learn more about the New York foreclosure process or the laws in place, you can contact a New York housing counseling agency or the state Banking Department (phone (877) 226-5697). Well trained staff and professionals at either of these organizations can answer an individuals questions about their mortgage, personal and credit card debts and the overall foreclosure process. In addition, these counselors can also help people find professional, free or low cost help and resources in the state.
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