Foreclosure Defense FAQs
Before a lender can file a foreclosure against a mortgage borrower, the lender must mail an acceleration letter as notice of default. This letter informs the borrower that the lender plans to accelerate the entire amount owed, if the arrears are not paid by a specified date. In most cases, the acceleration letter is not sent until the borrower is at least two months in default. After 31 days, the lender must send a pre-foreclosure notice to the borrower. This notice must attach a list of at least five nonprofit local agencies the borrower can contact for aid.
After 90 days, the lender must send a demand letter to the borrower which will give the borrower 30 days to pay the amount owed, with an added late fee. At this point, the lender may sue the borrower and officially begin the foreclosure proceedings by filing and serving a summons and complaint. The borrower has up to 30 days to file a response. Failing to file an answer that lists defenses waives the rights to bring those defenses later. The answer must be worded properly and an experienced foreclosure defense attorney in New York should be consulted.
- Become current on the loan. In this unlikely scenario, you would agree to pay the lender the entire late amount, plus late fees, by a certain date. The loan will then be reinstated.
- Negotiate a loan forbearance. A forbearance is when the lender agrees to temporarily reduce or suspend your monthly mortgage payments. At the end of the forbearance period, your mortgage payments will start again and the missed payments will be added to the end of the loan.
- Ask for a loan modification. In a loan modification, the lender agrees to change the terms of your mortgage loan, so that you can afford the payments. This could include making the term of your mortgage longer or lowering the interest rate. It is important to consult a foreclosure attorney in New York before agreeing to any type of new contract with your lender.
When a lender starts a foreclosure case against the owner of your home, you must be informed within 10 days. This does not mean that you immediately have to move out or that you have to move out at all. It depends on how the case proceeds. The owner might be able to settle the case and keep the property. The lender may fail to prove its case for foreclosure. The property might be sold to another landlord who will keep you as a tenant. There is no need to panic at the sight of a notice.
During the foreclosure case, the owner of the property is still responsible for keeping your home in a livable condition and will still collect the rent. You cannot be evicted without a court order. If you are on friendly terms with your landlord, it may be appropriate to refer him or her to a Staten Island foreclosure defense attorney.
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