Help for Homeowners: Foreclosure Bill Of Rights

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- 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.
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- Basic Coverage and Adding Coverage.
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Managing and Mitigating Losses

Residential Foreclosure Actions Consumer Bill of Rights

This Residential Foreclosure Actions Consumer Bill of Rights supplies guidance to property owners facing foreclosure in New york city. A foreclosure is a lawsuit, and homeowners need to seek support from an attorney or housing therapist in checking out potential legal defenses to the fit. Homeowners must also understand their general rights and commitments highlighted below.

Throughout the Foreclosure Process

You have the right to remain in your home and the duty to maintain your residential or commercial property unless and up until a court orders you to leave. If you desert your home, the plaintiff (bank or mortgage servicer) might 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 files you get from the complainant or the court in your foreclosure case. A failure to respond or appear in court when needed to do so might make it simpler for the complainant to reveal that your residential or commercial property is uninhabited and abandoned, 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 for free legal or housing therapy services.

You have a right to be devoid of harassment or foreclosure scams. Strongly think about seeking advice from with an attorney or housing therapist, if offered, before signing any documents. If you are the target of harassment or fraud, contact DFS by calling our Consumer Hotline at (800) 342-3736.

You have a right to prevent 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 alerted a minimum of 90 days before a foreclosure suit is filed informing you that you are in default and at risk of foreclosure. You deserve to check out "loss mitigation" choices that may enable you to keep your home and prevent lawsuits. The bank or mortgage servicer is required to help you understand your loss mitigation options. If you have submitted a finished loss mitigation application, your bank or mortgage servicer should complete its review of your application before continuing with the foreclosure fit.

RPAPL § 1303 has been amended to need plaintiffs in foreclosure actions to offer a more particular and handy notice to borrowers concerning their rights and responsibilities during the foreclosure process. Specifically, the notice should show that property owners can remain in their homes up until a foreclosure sale takes place and the responsibility to keep their residential or commercial property and pay relevant taxes until such time. This section is meant 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 lenders to offer borrowers a minimum of ninety days' notice before commencing a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") need to consist of the following language: "As of ___, your mortgage is ___ days in default ... You can treat this default by making the payment of ___ dollars by ___." Unfortunately, borrowers frequently analyzed this provision to suggest that as long as the borrower supplied the specified amount by the date specified, the loan would be renewed. Quite typically, the "treatment date" defined in the PFN is the earliest date on which the financial institution can begin a foreclosure action, which is 90 days after sending out the PFN. When the customer waits a complete 90 days to provide the quantity specified, any missed payments and associated interest and charges from the intervening months would be included to the deficiency. In such a case, the debtor who submits 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 attend to the default specified in the PFN.

The brand-new law addresses this issue by amending the first line of the notification to check out "Since ____ your mortgage is ____ days and ___ dollars in default." Similarly, it adds language to RPAPL § 1304 which highlights the borrower's ongoing rights and obligations throughout the foreclosure process. Read the new pre-foreclosure notification language.

Once a Foreclosure Action Begins

You can receive 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 should respond 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 methods. The Answer is your chance to state your defenses.

You need to seek advice from a lawyer or housing therapist for assistance in this process.

You have an obligation to appear at all arranged court looks. If you stop working to appear, you run the risk of losing essential rights, which could result in the loss of the case and your home.

You have a right to request court authorization to continue without paying court costs.

At a Necessary Settlement Conference

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

Both celebrations have a commitment to bring all required files to the settlement conference. For a general list of needed files, visit the Mandatory Settlement Conference information page.

Both celebrations should negotiate in "good faith", which suggests honestly and fairly. If you stop working to do so, you might lose the opportunity to pursue a court-supervised settlement. If the bank or mortgage servicer stops working to do so, the court may enforce similarly considerable penalties. Negotiating in excellent faith does not require either party to settle.

If you formerly failed to submit an Answer, you will be given an extra 30 days to do so at the settlement conference.

After Settlement Agreement or Fully Executed Loss Mitigation Agreement

Within 90 days of settling a settlement, the lis pendens designation on your residential or commercial property, which cautions individuals that title to your residential or commercial property is in dispute, need to be lifted.

You may be accountable for additional taxes if you reach a settlement that includes debt forgiveness. Seek recommendations from a tax expert about any resulting tax repercussions.

After Judgment of Foreclosure and Sale

Upon a judgment of foreclosure and sale, the brand-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 submit an application with the court for the surplus funds, based on particular due dates. It is necessary to seek aid from a legal company if you believe you are owed a surplus.

If the home is sold for less than what you owe, the loan provider may file an application for a judgment versus you for the difference, called a shortage judgment. You might deserve to contest the quantity of any shortage judgment, consisting of interest and penalties.

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

Housing counselors that deal with foreclosure-related concerns can offer you advice on your alternatives and resources at little or no cost. They might likewise have the ability to work out with your loan provider totally free and help you find complimentary legal services in your location.

Housing therapy resources for New Yorkers consist of:

- New York's Homeowner Protection Program (HOPP), which connects with housing therapists and legal services at no cost. Call the HOPP hotline at (855) 466-3456 or see homeownerhelpny.com.
You can discover a list of authorized 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 representatives, servicers, and investors that supply free assistance.
If you reside in New york city City, you can also call 311.

If you are in a foreclosure court case, you need to consult a lawyer.

Seek Legal Assistance

Contact a legal representative and review your mortgage files. Make certain your loan is not in violation of any laws. If you do not have an attorney, the New york city State Bar Association may be able to refer you to a proper lawyer for your scenario.

If you can not pay for a personal attorney, resources for complimentary or low-priced legal help include:

- New York's Homeowner Protection Program (HOPP), which gets in touch with housing therapists and legal services at no expense. Call the HOPP hotline at (855) 466-3456 or go to .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 totally free legal service providers in New York.