Help for Homeowners: Foreclosure Bill Of Rights

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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.
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 supplies assistance to house owners dealing with foreclosure in New York. A foreclosure is a claim, and homeowners ought to look for help from a lawyer or housing counselor in exploring prospective legal defenses to the suit. Homeowners must also know their general rights and commitments highlighted listed below.

Throughout the Foreclosure Process

You can stay in your home and the duty to keep your residential or commercial property unless and till a court orders you to abandon. If you abandon your home, the complainant (bank or mortgage servicer) may be able to foreclose on your residential or commercial property through an expedited procedure in court. To prevent this result, remain in your home and carefully evaluation and react to documents you receive from the plaintiff or the court in your foreclosure case. A failure to react or appear in court when required to do so might make it easier for the plaintiff to show that your residential or commercial property is vacant 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 totally free legal or housing counseling services.

You have a right to be totally free from harassment or foreclosure scams. Strongly consider seeking advice from a lawyer or housing counselor, if offered, before signing any documents. 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 notified a minimum of 90 days before a foreclosure match is filed notifying you that you remain in default and at threat of foreclosure. You deserve to explore "loss mitigation" options that might allow you to keep your home and avoid lawsuits. The bank or mortgage servicer is needed to help you comprehend your loss mitigation choices. If you have actually sent a finished loss mitigation application, your bank or mortgage servicer should complete its review of your application before continuing with the foreclosure match.

RPAPL § 1303 has been amended to require complainants in foreclosure actions to supply a more particular and valuable notification to debtors regarding their rights and responsibilities during the foreclosure procedure. Specifically, the notice must show that homeowners have the right to stay in their homes up until a foreclosure sale takes place and the obligation to preserve their residential or commercial property and pay relevant taxes till such time. This section is intended to help prevent residential or commercial properties from ending up being vacant in the very first place. Read the specific language needed by RPAPL § 1303.

RPAPL § 1304 requires mortgage lenders to provide debtors a minimum of ninety days' notification before commencing a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") must include the following language: "As of ___, your mortgage is ___ days in default ... You can treat this default by making the payment of ___ dollars by ___." Unfortunately, customers often interpreted this provision to imply that as long as the customer supplied the stated amount by the date specified, the loan would be renewed. Quite typically, 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 full 90 days to offer the amount defined, any missed out on payments and associated interest and fees from the stepping in months would be added to the deficiency. In such a case, the borrower who sends the amount set forth in the PFN would stay in default due to intervening accruals, in spite of his/her good-faith efforts to attend to the default specified in the PFN.

The brand-new law addresses this concern by amending the very first line of the notice to read "Since ____ your mortgage is ____ days and ___ dollars in default." Similarly, it adds language to RPAPL § 1304 which highlights the borrower's continuous rights and duties throughout the foreclosure procedure. Read the brand-new pre-foreclosure notification language.
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Once a Foreclosure Action Begins

You have the right to get a copy of the legal papers in the foreclosure claim when it begins. 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 one month if served on you by other methods. The Answer is your opportunity to state your defenses.

You need to speak with an attorney or housing therapist for assistance in this process.

You have an obligation to appear at all scheduled court looks. If you fail to appear, you run the risk of losing crucial rights, which might lead to the loss of the case and your home.
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You have a right to demand court consent to continue without paying court costs.

At a Mandatory Settlement Conference

You have a right to an explanation of the nature of the foreclosure action versus you.

Both parties have a commitment to bring all necessary documents to the settlement conference. For a basic list of required documents, check out the Mandatory Settlement Conference details page.

Both celebrations need to negotiate 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 stops working to do so, the court may impose similarly considerable charges. Negotiating in excellent faith does not require either celebration to settle.

If you formerly failed to submit an Answer, you will be given an additional 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 classification on your residential or commercial property, which warns people that title to your residential or commercial property remains in conflict, must be raised.

You might be accountable for additional taxes if you reach a settlement that includes debt forgiveness. Consult from a tax expert 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 or commercial property.

If the home is resold for more than what you owe, you have a right to submit an application with the court for the surplus funds, based on particular deadlines. It is very important to seek assistance from a legal provider if you think you are owed a surplus.

If the home is sold for less than what you owe, the lending institution might submit an application for a judgment against you for the difference, called a deficiency judgment. You may have the right to object to the amount of any deficiency judgment, consisting of interest and charges.

Get Help! Contact a Not-for-Profit Housing Counselor

Housing therapists that handle foreclosure-related issues can provide you advice on your alternatives and resources at little or no cost. They may also have the ability to negotiate with your lending institution for totally free and assist you discover totally free legal services in your area.

Housing counseling resources for New Yorkers consist of:

- New york city's Homeowner Protection Program (HOPP), which connects with housing counselors and legal services at no expense. Call the HOPP hotline at (855) 466-3456 or check out homeownerhelpny.com.
You can discover a list of authorized non-profit housing counselors by county here, on the DFS site.
24-Hour assistance is readily available toll-free on the HOPE NOW hotline at 888-995-HOPE (888-995-4673). HOPE NOW is an alliance of HUD authorized counseling agents, servicers, and financiers that offer complimentary assistance.
If you live in New york city City, you can also call 311.

If you are in a foreclosure lawsuit, you should speak with an attorney.

Seek Legal Assistance

Contact a lawyer and review your mortgage documents. Make certain your loan is not in violation of any laws. If you do not have a lawyer, the New York State Bar Association may be able to refer you to an appropriate attorney for your situation.

If you can not pay for a private lawyer, resources free of charge or affordable legal assistance include:

- New york city's Homeowner Protection Program (HOPP), which gets in touch with housing therapists and legal services 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 free legal provider in New york city.