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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
- An Occupant'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.
- Just How Much Insurance Do You Need?
- Problems Obtaining Insurance.
- Flood Insurance.
- Understanding What Affects the Cost.
- Looking for Insurance.
- Managing and Mitigating Losses
Residential Foreclosure Actions Consumer Bill of Rights
This Residential Foreclosure Actions Consumer Bill of Rights provides guidance to property owners dealing with foreclosure in New york city. A foreclosure is a lawsuit, and property owners need to look for support from an attorney or housing counselor in checking out possible legal defenses to the suit. Homeowners need to also understand their general rights and obligations highlighted listed below.
Throughout the Foreclosure Process
You can remain in your home and the responsibility to preserve your residential or commercial property unless and till a court orders you to leave. If you abandon your home, the complainant (bank or mortgage servicer) may have the ability to foreclose on your residential or commercial property through an expedited procedure in court. To prevent this outcome, remain in your home and carefully evaluation and respond to documents you get from the plaintiff or the court in your foreclosure case. A failure to react or appear in court when needed to do so could make it simpler for the complainant to reveal that your residential or commercial property is uninhabited and abandoned, which could put you at threat of an expedited foreclosure.
You have a right to be represented by a lawyer and might be qualified for totally free legal or housing counseling services.
You have a right to be free from harassment or foreclosure rip-offs. Strongly think about seeking advice from an attorney or housing counselor, if offered, before signing any papers. If you are the target of harassment or scams, contact DFS by calling our Consumer Hotline at (800) 342-3736.
You have a right to avoid foreclosure if you repay your loan in full at any time prior to the sale of your home, or if you negotiate a settlement with the plaintiff.
Before a Foreclosure Action Begins in Court
You have a right to be informed a minimum of 90 days before a foreclosure suit is filed notifying you that you are in default and at risk of foreclosure. You have the right to explore "loss mitigation" options that may enable you to keep your home and prevent litigation. The bank or mortgage servicer is needed to help you understand your loss mitigation options. If you have submitted a finished loss mitigation application, your bank or mortgage servicer need to complete its evaluation of your application before continuing with the foreclosure suit.
RPAPL § 1303 has actually been changed to require plaintiffs in foreclosure actions to offer a more particular and valuable notice to borrowers regarding their rights and responsibilities throughout the foreclosure process. Specifically, the notice should indicate that homeowners deserve to remain in their homes until a foreclosure sale occurs and the obligation to keep their residential or commercial property and pay appropriate taxes till such time. This section is planned to assist prevent residential or commercial properties from ending up being vacant in the first place. Read the specific language required by RPAPL § 1303.
RPAPL § 1304 needs mortgage financial institutions to give customers at least 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 treat this default by making the payment of ___ dollars by ___." Unfortunately, customers often analyzed this arrangement to imply that as long as the debtor supplied the mentioned amount by the date defined, the loan would be reinstated. Frequently, the "remedy date" defined in the PFN is the earliest date on which the lender can start a foreclosure action, which is 90 days after sending the PFN. When the debtor waits a full 90 days to provide the amount defined, any missed payments and associated interest and charges from the stepping in months would be contributed to the shortage. In such a case, the debtor who sends the quantity stated in the PFN would stay in default due to stepping in accruals, despite his/her good-faith efforts to attend to the default specified in the PFN.
The brand-new law addresses this concern by modifying the first line of the notice to read "As of ____ your mortgage is ____ days and ___ dollars in default." Similarly, it adds language to RPAPL § 1304 which highlights the debtor's continuous rights and duties throughout the foreclosure procedure. Read the brand-new pre-foreclosure notification language.
Once a Foreclosure Action Begins
You deserve to receive a copy of the legal documents in the foreclosure suit when it starts. This is called "service" of the Summons and Complaint. You need to react to the Summons and Complaint with an "Answer" within 20 days after you have actually been personally served, and within 1 month if served on you by other ways. The Answer is your chance to specify your defenses.
You must talk to a lawyer or housing counselor for aid in this procedure.
You have a commitment to appear at all arranged court looks. If you stop working to appear, you run the risk of losing essential rights, which might result in the loss of the case and your home.
You have a right to demand court consent to continue without paying court costs.
At an Obligatory Settlement Conference
You have a right to a description of the nature of the foreclosure action versus you.
Both parties have a commitment to bring all required files to the settlement conference. For a general list of needed documents, go to the Mandatory Settlement Conference details page.
Both celebrations should negotiate in "great faith", which suggests honestly and relatively. 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 may enforce likewise considerable penalties. Negotiating in good faith does not require either party to settle.
If you previously failed to send an Answer, you will be given an additional one month to do so at the settlement conference.
After Settlement Agreement or Fully Executed Loss Mitigation Agreement
Within 90 days of completing a settlement, the lis pendens classification on your residential or commercial property, which warns individuals that title to your residential or commercial property is in conflict, must be raised.
You might be responsible for extra taxes if you reach a settlement that consists of debt forgiveness. Seek suggestions from a tax expert about any resulting tax effects.
After Judgment of Foreclosure and Sale
Upon a judgment of foreclosure and sale, the brand-new owner can look for 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 file an application with the court for the surplus funds, based on particular due dates. It is very important to seek help from a legal service company if you believe you are owed a surplus.
If the home is cost less than what you owe, the loan provider may submit an application for a judgment against you for the distinction, called a deficiency judgment. You might have the right to object to the quantity of any deficiency judgment, including interest and charges.
Get Help! Contact a Not-for-Profit Housing Counselor
Housing counselors that handle foreclosure-related issues can give you guidance on your alternatives and resources at little or no charge. They may also have the ability to work out with your lender for complimentary and help you find free legal services in your area.
Housing counseling resources for New Yorkers consist of:
- New York'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 discover a list of authorized non-profit housing counselors by county here, on the DFS site.
- 24-Hour support is available toll-free on the HOPE NOW hotline at 888-995-HOPE (888-995-4673). HOPE NOW is an alliance of HUD approved counseling agents, servicers, and investors that provide free assistance.
- If you live in New york city City, you can also call 311.
If you are in a foreclosure lawsuit, you need to speak with an attorney.
Seek Legal Assistance
Contact a lawyer and examine your mortgage files. Ensure your loan is not in violation of any laws. If you do not have a lawyer, the New York State Bar Association might be able to refer you to an appropriate lawyer for your circumstance.
If you can not afford a personal lawyer, resources free of charge or affordable legal assistance consist of:
- New york city's Homeowner Protection Program (HOPP), which connects with housing counselors and legal at no charge. Call the HOPP hotline at (855) 466-3456 or see homeownerhelpny.com. - The New York City State Bar Association's Lawyer Referral and Information Service.
- The Legal Service Corporation website.
LawHelp.org, an online directory site of complimentary legal company in New York.