A Primer On The Foreclosure Process | Foreclosure Defense
Foreclosure Defense
Foreclosure
12 months ago
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PRE-FORECLOSURE

When a home owner falls three months behind on their mortgage payments the property is considered to be in a pre-foreclosure status. This will cause the financial institution to send demand letters. The letters will talk about mortgage modifications, forbearance plans, and possible other means of avoiding foreclosure. If the homeowner takes no action, the financial institution will usually initiate the foreclosure process.

NOTICE OF THE DEFAULT

Before the financial institution actually serves the summons and complaint in foreclosure case, a 90 day notice will be given to the homeowner. This 90 day notice advises the homeowner unless arrangements are made with regard to dealing with their late mortgage payments, a foreclosure lawsuit will be initiated.

FORECLOSURE LITIGATION

The litigation process in New York usually moves slowly. It was made slower by Governor Andrew Cuomo and Governor Hochul shutting down the foreclosure process during the course of the COVID-19 pandemic for approximately two years. A qualified foreclosure defense attorney can often tie a foreclosure up in the courts in New York for three to five years or even much longer than that.

THE END GAME IN A FORECLOSURE

At the end of a foreclosure litigation a public foreclosure auction takes place on the courthouse steps. The home is sold at the auction to the highest bidder. The financial institution will bid the entire amount of their mortgage and then speculators can bid over that amount if they seek to buy the home.

AFTER THE FORECLOSURE

When the foreclosure lawsuit has ended and a new owner has taken title to the home the new homeowner must provide notice they are the new homeowner to the ones who have lost their home. The notice statute in New York State requires they provide the former homeowners a copy of the new deed. Thereafter, the former homeowners will have to make arrangements to move from the premises or face an eviction proceeding which can result in their being put out of their home by the Sheriff or in the city of New York by a Marshall.

The law office of Schlissel DeCorpo have been defending homeowners regarding mortgage issues for more than three decades. They can be reached at 516-561-6645, 718-350-2802, 631-319-8262 and 914-998-0080 or emailed at [email protected].