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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.
- 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 assistance to property owners facing foreclosure in New York. A foreclosure is a suit, and homeowners ought to look for assistance from a lawyer or housing therapist in exploring potential legal defenses to the match. Homeowners need to likewise know their basic rights and obligations highlighted listed below.
Throughout the Foreclosure Process
You have the right to remain in your home and the duty to keep your residential or commercial property unless and until a court orders you to leave. If you abandon your home, the plaintiff (bank or mortgage servicer) might be able to foreclose on your residential or commercial property through an expedited procedure in court. To avoid this outcome, remain in your home and thoroughly review and react to documents you receive from the complainant or the court in your foreclosure case. A failure to respond or appear in court when required to do so might make it much easier for the plaintiff to reveal that your residential or commercial property is vacant and deserted, which could put you at danger of a sped up foreclosure.
You have a right to be represented by an attorney and may be qualified free of charge legal or housing therapy services.
You have a right to be devoid of harassment or foreclosure frauds. Strongly consider consulting with a lawyer or housing therapist, if available, 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 completely 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 informed at least 90 days before a foreclosure match is submitted notifying you that you remain in default and at danger of foreclosure. You can explore "loss mitigation" choices that might permit you to keep your home and avoid litigation. The bank or mortgage servicer is required to help you understand your loss mitigation choices. If you have actually submitted a completed loss mitigation application, your bank or mortgage servicer need to complete its review of your application before continuing with the foreclosure fit.
RPAPL § 1303 has been modified to require plaintiffs in foreclosure actions to offer a more specific and practical notice to borrowers concerning their rights and obligations throughout the foreclosure process. Specifically, the notice needs to show that homeowners can stay in their homes up until a foreclosure sale happens and the obligation to preserve their residential or commercial property and pay suitable taxes until such time. This section is planned to help avoid residential or commercial properties from becoming vacant in the first location. Read the particular language needed by RPAPL § 1303.
RPAPL § 1304 requires mortgage financial institutions to provide customers a minimum of ninety days' notice before commencing a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") need to consist of the following language: "Since ___, your mortgage is ___ days in default ... You can treat this default by making the payment of ___ dollars by ___." Unfortunately, customers frequently interpreted this arrangement to indicate that as long as the debtor provided the specified quantity by the date defined, the loan would be restored. Frequently, the "remedy date" defined in the PFN is the earliest date on which the financial institution can start a foreclosure action, which is 90 days after sending the PFN. When the customer waits a full 90 days to provide the amount defined, any missed payments and associated interest and charges from the intervening months would be added to the shortage. In such a case, the customer who sends the amount stated in the PFN would stay in default due to stepping in accruals, in spite of his or her good-faith efforts to address the default specified in the PFN.
The new law addresses this issue by amending the very first line of the notification to read "Since ____ your mortgage is ____ days and ___ dollars in default." Similarly, it includes language to RPAPL § 1304 which highlights the borrower's ongoing rights and duties throughout the foreclosure procedure. Read the new pre-foreclosure notification language.
Once a Foreclosure Action Begins
You deserve to get a copy of the legal documents in the foreclosure lawsuit when it starts. This is referred to as "service" of the Summons and Complaint. You must react to the Summons and Complaint with an "Answer" within 20 days after you have been personally served, and within 30 days if served on you by other means. The Answer is your opportunity to mention your defenses.
You need to talk to an attorney or housing counselor for help in this procedure.
You have a responsibility to appear at all set up court appearances. If you stop working to appear, you risk losing essential rights, which could cause the loss of the case and your home.
You have a right to demand court authorization to proceed without paying court costs.
At a Mandatory Settlement Conference
You have a right to a description of the nature of the foreclosure action against you.
Both parties have a commitment to bring all necessary documents to the settlement conference. For a general list of required files, visit the Mandatory Settlement Conference details page.
Both celebrations should negotiate in "good faith", which suggests truthfully 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 might enforce likewise substantial charges. Negotiating in great faith does not require either celebration to settle.
If you previously stopped working to send an Answer, you will be offered an additional thirty 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 alerts individuals that title to your residential or commercial property remains in dispute, need to be lifted.
You might be accountable for additional taxes if you reach a settlement that consists of 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 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 essential to seek aid from a legal service supplier if you believe you are owed a surplus.
If the home is cost less than what you owe, the lender may submit an application for a judgment against you for the distinction, referred to as a deficiency judgment. You may deserve to object to the quantity of any deficiency judgment, consisting of interest and charges.
Get Help! Contact a Not-for-Profit Housing Counselor
Housing therapists that deal with foreclosure-related issues can give you suggestions on your choices and resources at little or no charge. They might also be able to negotiate with your lender for free and assist you find free legal services in your area.
Housing therapy resources for New Yorkers include:
- New york city's Homeowner Protection Program (HOPP), which links with housing counselors and legal services at no cost. 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 website.
- 24-Hour support 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 representatives, servicers, and investors that provide free support.
- If you reside 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 review your mortgage documents. Make certain your loan is not in infraction of any laws. If you do not have a lawyer, the New york city State Bar Association may be able to refer you to a proper lawyer for your circumstance.
If you can not pay for a private lawyer, resources totally free or low-cost legal assistance consist of:
- New york city's Homeowner Protection Program (HOPP), which connects with housing therapists and legal services at no charge. Call the HOPP hotline at (855) 466-3456 or visit homeownerhelpny.com.
- The New York State Bar Association's Lawyer Referral and Information Service.
- The Legal Service Corporation site.
LawHelp.org, an online directory site of complimentary legal provider in New york city.
