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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
- A Tenant'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.
- How Much Insurance Do You Need?
- Problems Obtaining Insurance.
- Flood Insurance.
- Understanding What Affects the Cost.
- Shopping for Insurance.
- Managing and Mitigating Losses
Residential Foreclosure Actions Consumer Bill of Rights
This Residential Foreclosure Actions Consumer Bill of Rights provides guidance to house owners dealing with foreclosure in New York. A foreclosure is a suit, and property owners should seek support from an attorney or housing therapist in exploring possible legal defenses to the match. Homeowners need to also understand their general rights and responsibilities highlighted below.
Throughout the Foreclosure Process
You can stay in your home and the task to preserve your residential or commercial property unless and until a court orders you to vacate. If you desert 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 avoid this outcome, remain in your home and carefully review and react to documents you receive from the plaintiff or the court in your foreclosure case. A failure to respond or appear in court when required to do so might make it simpler for the plaintiff to reveal that your residential or commercial property is uninhabited and abandoned, which might put you at threat of an accelerated foreclosure.
You have a right to be represented by an attorney and might be qualified for free legal or housing therapy services.
You have a right to be devoid of harassment or foreclosure frauds. Strongly consider talking to a lawyer or housing therapist, 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 prevent foreclosure if you repay your loan in complete at any time prior to the sale of your home, or if you negotiate a settlement with the complainant.
Before a Foreclosure Action Begins in Court
You have a right to be alerted a minimum of 90 days before a foreclosure match is filed notifying you that you remain in default and at threat of foreclosure. You have the right to check out "loss mitigation" options that may allow you to keep your home and avoid litigation. The bank or mortgage servicer is needed to help you comprehend your loss mitigation alternatives. If you have sent a finished loss mitigation application, your bank or mortgage servicer must finish its review of your application before proceeding with the foreclosure fit.
RPAPL § 1303 has actually been changed to require complainants in foreclosure actions to supply a more particular and useful notice to customers regarding their rights and commitments throughout the foreclosure procedure. Specifically, the notice must show that house owners can stay in their homes until a foreclosure sale takes place and the responsibility to preserve their residential or commercial property and pay applicable taxes until such time. This area is intended to help prevent residential or commercial properties from becoming vacant in the first location. Read the specific language required by RPAPL § 1303.
RPAPL § 1304 requires mortgage financial institutions to provide borrowers a minimum of ninety days' notification before commencing a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") should include the following language: "As of ___, your mortgage is ___ days in default ... You can cure this default by making the payment of ___ dollars by ___." Unfortunately, customers typically translated this provision to indicate that as long as the debtor provided the mentioned quantity by the date defined, the loan would be renewed. Quite frequently, the "remedy date" specified in the PFN is the earliest date on which the lender can start a foreclosure action, which is 90 days after sending out the PFN. When the borrower waits a complete 90 days to supply the quantity defined, any missed out on payments and associated interest and charges from the intervening months would be contributed to the shortage. In such a case, the borrower who submits the quantity set forth in the PFN would remain in default due to intervening accruals, despite his/her good-faith efforts to attend to the default specified in the PFN.
The new law addresses this problem by modifying the first line of the notification to check out "As of ____ your mortgage is ____ days and ___ dollars in default." Similarly, it adds language to RPAPL § 1304 which highlights the borrower's continuous rights and responsibilities throughout the foreclosure procedure. Read the brand-new pre-foreclosure notice language.
Once a Foreclosure Action Begins
You have the right to receive a copy of the legal papers in the foreclosure claim when it begins. This is known as "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 one month if served on you by other ways. The Answer is your chance to mention your defenses.
You should talk to an attorney or housing counselor for aid in this procedure.
You have an obligation to appear at all arranged court looks. If you fail to appear, you risk losing essential rights, which might result in the loss of the case and your home.
You have a right to demand court approval to continue without paying court costs.
At a Compulsory Settlement Conference
You have a right to an explanation of the nature of the foreclosure action versus you.
Both parties have an obligation to bring all necessary files to the settlement conference. For a basic list of needed files, go to the Mandatory Settlement Conference details page.
Both celebrations need to work out in "excellent faith", which indicates truthfully and fairly. If you fail to do so, you may lose the chance to pursue a court-supervised settlement. If the bank or mortgage servicer fails to do so, the court might enforce likewise substantial penalties. Negotiating in great faith does not require either party to settle.
If you formerly failed to send a Response, you will be offered an extra 30 days 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 designation on your residential or commercial property, which alerts people that title to your residential or commercial property remains in disagreement, should be lifted.
You may be accountable for extra taxes if you reach a settlement that consists of debt forgiveness. Seek recommendations from a tax professional about any resulting tax consequences.
After Judgment of Foreclosure and Sale
Upon a judgment of foreclosure and sale, the 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, subject to particular due dates. It is necessary to seek help from a legal service provider if you think 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 difference, referred to as a deficiency judgment. You might deserve to object to the quantity of any deficiency judgment, including interest and penalties.
Get Help! Contact a Not-for-Profit Housing Counselor
Housing counselors that deal with foreclosure-related concerns can offer you recommendations on your alternatives and resources at little or no charge. They might also be able to negotiate with your loan provider for complimentary and assist you discover free legal services in your area.
Housing counseling resources for New Yorkers consist of:
- New York's Homeowner Protection Program (HOPP), which links with housing therapists and legal services at no cost. Call the HOPP hotline at (855) 466-3456 or go to homeownerhelpny.com.
- You can find a list of approved non-profit housing counselors by county here, on the DFS website.
- 24-Hour assistance is offered 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 financiers that offer complimentary assistance.
- If you reside in New york city City, you can likewise call 311.
If you remain in a foreclosure lawsuit, you need to consult a lawyer.
Seek Legal Assistance
Contact a lawyer and review your mortgage files. Make certain your loan is not in infraction of any laws. If you do not have an attorney, the New york city State Bar Association might have the ability to refer you to a proper attorney for your situation.
If you can not pay for a personal lawyer, resources free of charge or affordable legal assistance consist of:
- New York's Homeowner Protection Program (HOPP), which connects with housing counselors and legal services at no charge. Call the HOPP hotline at (855) 466-3456 or check out homeownerhelpny.com.
- The New York State Bar Association's Lawyer Referral and Information Service.
- The Legal Service Corporation site.
LawHelp.org, an online directory of complimentary legal provider in New York.
