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The Law Offices of Robert E. Brown, P.C.

Banks will not be lenient if someone missed mortgage payments due to illness, death, or unemployment; banks don’t have hearts—it is all business. In every foreclosure case, one of the first things we do is try to determine your goal as a homeowner. For example, if it is your goal to remain in the house, then you might want to apply for an affordable loan modification, in which case we would put together a loan modification package. This package would include information pertaining to your monthly income and expenses, copies of your paystubs, copies of bank statements, and a hardship letter. The hardship letter would provide an explanation as to why you went into foreclosure in the first place. Oftentimes, the reason is that someone in the family became ill, passed away, lost their job, or got demoted.

Can I Delay The Foreclosure From Going Forward?

In 2008 and 2009, the New York Times wrote several articles saying that it would take 90 years to create a foreclosure docket in the courts because there were so many foreclosures. I guess that those estimates were wrong because foreclosures are moving much faster nowadays, with some taking fewer than two years from the time that a person is served with the summons in complaint to the time that their house is auctioned. One of the basic misconceptions held by many homeowners is that being served with the summons in complaint means that they must be out of their house within 30 days; nothing is further from the truth. Depending on the legal battles involved, a foreclosure case can take several years.

What Is The Foreclosure Legal Process? How Long Does It Generally Take?

The foreclosure process begins when the bank serves the homeowner with a lawsuit for foreclosure, which is known as a summons in compliant. The homeowner then has between 20 and 30 days to put in a formal legal document known as an answer. Once the homeowner does this, the case gets sent to the foreclosure conference. The homeowner will receive a letter in the mail saying that they have a court date in front of a judge for foreclosure conference. This is something that the homeowner’s attorney can attend without the presence of the homeowner. During this foreclosure conference, we will attempt to negotiate a loan modification.

If successful, then we will submit a completed loan modification package by a certain date on behalf of the homeowner. The bank will then send us a missing document letter for a certain date and we will respond by providing the missing documents by a certain date. If the parties don’t follow the schedule, then the case will get adjourned to a future date in order to determine at that point if the homeowner will be eligible for a loan modification. During the foreclosure conference, issues such as a short sale or a deed in lieu of foreclosure may be addressed.

If the homeowner does not put in the formal legal document known as an answer, then they might lose their chance to have their attorney attend the foreclosure conference and the bank may make a motion for a default judgment. If the homeowner doesn’t respond, then the bank will get a judgment and ask the court to appoint a referee. The referee will calculate how much money is owed and the bank will make another motion for a judgment of foreclosure and sale. If the homeowner doesn’t oppose it, then the bank will get a judgment of foreclosure and sale and will be allowed to auction off the house. The bank has to give approximately one month’s notice published in a public newspaper and sent to the homeowner’s current legal address. Many people think that the title of a house changes at an auction, but it doesn’t. At the auction, the winner of the auction will have to put down 10 percent of the purchase price and will be given 30 days to have a closing. Once they have paid the entire amount of the auction price, the purchaser at an auction will become the owner of the house.

For more information on Leniency Of Banks In Missed Mortgage Payments, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (212) 766-9779 today.

Robert Brown

Call For A Free Consultation
(212) 766-9779