What Happens When I Start To Miss My Mortgage Payments?
When you miss your mortgage payments, you will receive inquiries from your bank or servicer regarding your missed payments. These inquiries will be in the form of telephone calls and letters.
What Happens If I Continue To Miss Mortgage Payments For A Considerable Amount Of Time?
If you miss mortgage payments for a considerable amount of time, your bank or servicer will eventually send you a notice stating that if you don’t pay them within 30 days, then the entire principal amount will become due. This is called accelerating the principal balance of the mortgage, which is the beginning of the foreclosure process. In New York State, banks must take certain steps prior to initiating a foreclosure lawsuit against you, and sending an acceleration notice is usually the first step.
If you miss mortgage payments for a considerable amount of time, the bank or servicer will also give you a statutory notice. A few years ago, New York State legislature required the banks to give certain notices to homeowners to warn them when they are about to go into foreclosure. Those notices required banks to give homeowners 90 days’ notice of the foreclosure. In addition to sending it by regular and certified mail, the bank must notify the New York State Banking Department that they are initiating a foreclosure action.
What Is Foreclosure? How Does A Foreclosure Start?
If you own a home on which you’re making mortgage payments, the bank will have a lien against that home that will allow them to sell it if you fail to pay the mortgage. When a foreclosure begins, two things generally happen. First, they draft a lawsuit against you in the form of a summons and a complaint and notify you of the lawsuit. In addition, they file a notice of pendency against your house so that if anyone looks at the public records, they will see that a foreclosure action has been filed against you. This would prevent you from selling your house before handling the foreclosure action.
How Long Do I Have To Respond When Served With A Foreclosure Summons In New York?
If you are served a foreclosure summons by hand, then you will have 20 days to respond. If your spouse receives a foreclosure summons on your behalf, then the bank will also have to mail a copy to you, and you will have 30 days to respond. In order to respond appropriately to a foreclosure summons, you must file and serve a formal legal document known as an “answer.” If you do not do this, then you will be considered in default and the bank will win. Many people don’t realize that they cannot simply call the bank and request a loan modification; they must formally respond by filing legal documentation with the county clerk’s office.
For more information on Missing Mortgage Payments In New York, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (212) 766-9779 today.
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