One of the most challenging tasks homeowners face in Gravesend, NY, is how to delay foreclosure. The best action in that situation is talking to a skilled attorney. A good lawyer knows the legal process and can provide you with solid legal advice. Following a foreclosure, you have a lot of options but only a few right choices.
Contact an attorney who can guide you through the process of analyzing your financial situation and making the best choice for your situation. You can save time to see all delaying foreclosure options and ask a lawyer if the chosen one is available for you.
Types of Foreclosure Proceedings
There are many foreclosure proceedings, but the most common is foreclosure by entry and possession, foreclosure by quitclaim, and foreclosure by default. Foreclosure by entry and possession is where a Notice of default is served to the property’s owner. A foreclosure by quit claim is where a deed of trust is executed with the assistance of a lawyer or other legal expert, who promises to pay back the lender if the property is not returned within a specific time limit. New York is a judicial foreclosure state, so you need to learn more about that type.
Foreclosure Type Judicial
In New York, residential homes can be “foreclosed upon” through judicial or non-judicial methods. For example, with judicial foreclosure in New York City, the minimum sale amount for a judicial foreclosure is $1,532. In contrast, the highest fee charged by the county of Nassau and Suffolk comes at a maximum of $2,500. On the other hand, there are non-judicial foreclosures, which local governments can do through deed possession. But non-judicial happens if the mortgage note included a “power of sale clause,” which is rare.
The state laws on judicial foreclosures vary depending on which district or county it is. For this reason, you need to consult your local foreclosure court to understand the details of their foreclosure remedies. For non-judicial foreclosures, the court will only allow the bank or lender to have full rights to redeem the property through a legal process or a deed of trust. With judicial foreclosures, banks and lenders allow only to redeem the property through auction. And they must establish the process under the New York State Real Estate Abuse Act.
How Judicial Foreclosure Works
In judicial foreclosure type, the lender looks to foreclose by filing a civil suit versus the borrower and offering the borrower an official summons and foreclosure complaint. The whole process is handled through the local court system. The court appoints an umpire to conduct the public foreclosure auction on the courthouse actions.
The lender documents a lis pendens with the region staff where the property lies. This lis pendens becomes a lien on the property and gives notice of the pending foreclosure public auction. The court grants a judgment allowing the lender to conduct the public foreclosure auction.
The Notice of Foreclosure Sale (NFS), which reveals the day, time, and place of the public auction, is released and sometimes posted (depending upon the location) for a specific period before public auction. Typically, the borrower can stop the foreclosure by repaying what he owes up to the sale minute. The process can draw from 4 to 8 months to complete if no one raises any lawful objections to the foreclosure.
How to Delay Judicial Foreclosure
You will have a couple of weeks to react to a foreclosure suit submitted by the lender. Ignoring will result in a default judgment for the lender and order to start the foreclosure sale. If you have protection, you can prevent the lender from obtaining a default judgment. If your protection is solid, you might have the ability to prolong the process to a trial. You might have the ability to prevail at trial if you have adequate evidence to support your protection. This would undoubtedly result in the judge dismissing the situation. A dismissal usually will be “without bias,” which allows the lender to begin over from the start.
If your protection is not solid, you might have the ability to delay the process by reacting to the suit, but the delay may be much shorter. The lender will probably bring a motion for recap judgment and obtain a judgment that finishes the case unless you can show a factual, accurate dispute.
While it might take years to resolve a foreclosure suit when a property owner has solid protection, it may be an issue of months before recap judgment finishes a situation. Still, this gives you more time than a default judgment, which might happen about a month after the lender files the case. You can also attempt to delay the process as long as feasible by waiting until near the due date for reacting before filing your answer. However, you will not want to run the risk of reacting far too late and waiving your rights.
Fair Debt Collection Practices Act
The New York State Debt Collectors Association (NYSDCA) also provides information on judicial and non-judicial foreclosure proceedings that may result in a deficiency judgment against the borrower. The FDCPA applies to all mortgage loans in New York State, including the loans secured by a home equity loan or a first mortgage. Note that the FDCPA applies whether or not you are a party to the underlying loan or the borrower of the underlying property. If you are a lien holder, you should be aware that you may lose all of your rights to redemption. What happens if you fail to cure your default, even in cases involving judicial foreclosures. For more information on your rights as a lien holder, contact a foreclosure lawyer or consultant.
Can I Sell My House to Avoid Foreclosure
You may wonder how to avoid foreclosure without hiring an attorney. In most instances, it is possible to dodge foreclosure by selling your home before the actual foreclosure sale date. Your choices to sell your home will largely depend on several factors. Those factors include how much time you have left and how far in arrears you are. The time given for the notice of default can vary widely between counties, so it can be difficult to pinpoint an exact time frame. Local attorney or foreclosure counsel can answer about what timeline do you have.
The lender may also offer to put your house on the market to sell it quickly. You will have to show them current income proof and documentation of any previous property sales to qualify. It is often a good idea to talk to a realtor who specializes in short sales. They can put you in contact with someone who can be more specific about the lender’s pre-foreclosure plan.
Many real estate agents do have relationships with individual banks. They can determine if you qualify for a short sale plan, whether it is a refinancing deal or a modification of the original loan. This can be very beneficial to you as you can avoid foreclosure and keep your credit rating from being affected. The key is to ask questions and be persistent so that you know what you’re getting into.
Bankruptcy and Automatic Stay to Delay Foreclosure in Gravesend
With an automatic stay, the lenders may request the court to halt any further action or proceedings against the homeowner. The court will then notify the loan holder of the automatic stay, and the creditor will need to cease any contact with the homeowner. This is highly effective because, while it allows the creditor to continue collecting the delinquent payments, the homeowner will not be evicted from the property.
A new law that took effect in 2021 makes many other delaying foreclosures more feasible for the struggling homeowner. Known as the New York Refinance Law, the new law prohibits the foreclosure of a home unless the homeowner can prove that the sale would cause an “unreasonable hardship.” For many homeowners, an “unreasonable hardship” could mean that the new interest rate on their loan or new homeowner fees would make their present housing unaffordable.
If a homeowner can show that they cannot afford to make the payment for at least two months, then the courts will issue a temporary restraining order (TRO) that prevents the sheriff from proceeding with the eviction. After the TRO has been lifted, the homeowner may begin to work with their lender on a deed-in-lieu of foreclosure.
Request A Consultation From Foreclosure Defense Attorney
There are instances when a homeowner needs a foreclosure defense attorney’s assistance. One such example is when a borrower or debtor faces a potential foreclosure while working under a mortgage agreement in either default or bankruptcy. In this instance, a pre-bankruptcy consultation with an experienced bankruptcy lawyer would be beneficial. The attorney can advise the borrower on how to delay foreclosure under state law.
Another situation in which borrowers need to have foreclosure consultation is when the lender fails to file its bankruptcy declaration within the appropriate time. This is usually referred to as the “non-filing” of the bankruptcy declaration. Under NY state law, lenders are required to file a statement of bankruptcy if they cannot agree with a borrower on terms that will keep the house in the borrower’s possession. The filing of a Chapter 13 bankruptcy automatically puts two years of deficiency order into effect, prohibiting the lender from taking any further action in the foreclosure case.
How long can foreclosure be delayed?
While it differs based upon each borrower, it can decrease the process for up to six months. Many lawyers specify the financial institutions are very disorganized, and overall, the system and method are set up to be beneficial to homeowners who fight the filing.
How do I postpone my foreclosure sale date?
If a foreclosure sale is scheduled to occur in the next day or two, the very best way to hold the sale instantly is by filing for bankruptcy. The automated stay will stop the foreclosure in its tracks. Once you file for bankruptcy, an “automated stay” immediately enters into effect.
Can you stop foreclosure once it starts?
You can stop the foreclosure process by notifying your lender that you will settle the default quantity and extra fees. Your lender would undoubtedly prefer to have the cash much more than they would certainly have your home, so this should work unless there are extenuating circumstances.
Do you have to disclose a foreclosure after seven years?
First, a foreclosure usually remains on your credit report for seven years. If a foreclosure or various other derogatory credit occasion doesn’t show up on your credit report. In that case, that doesn’t imply you’re not required to reveal the affair to your lender when you apply for a home loan.
Can you still live in your house after foreclosure?
In some circumstances, panicked homeowners leave their homes after missing out on a couple of home loan resettlements or once a foreclosure starts. But you have the lawful right to remain in your house until the process is finished. Foreclosure treatments can take a couple of months or, sometimes, as long as a year or much longer.