Help for Homeowners: Foreclosure Bill Of Rights

More ...
Applications & Filings
Application Fees & Assessments
Pharmacy Benefit
Banks and Trusts
Insurance Agents & Brokers
Insurer
Mortgage Companies
Money Transmitters
Virtual Currency Businesses
More ...
Industry Guidance
Cybersecurity Resource Center
Climate Change
Diversity, Equity and Inclusion
Innovation.
Health Equity.
Enforcement & Discipline.
Circular Letters.
Industry Letters.
Regulatory & Legislative Activities.
Reports & Publications.
Newsroom.
Statements & Comment Letters.
Examinations & Exam Reports.
DFS Annual Reports.
Other Reports.
Interagency MOUs.
Public Hearings.
Weekly Bulletins.
About Us.
Contact Us.
File a Complaint or Appeal.
Careers With DFS.
Newsroom.
Procurement.

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.
How Much Insurance Do You Need?
Problems Obtaining Insurance.
Flood Insurance.
Understanding What Affects the Cost.
Shopping for Insurance.
Managing and Mitigating Losses

Residential Foreclosure Actions Consumer Bill of Rights

This Residential Foreclosure Actions Consumer Bill of Rights offers assistance to house owners facing foreclosure in New York. A foreclosure is a lawsuit, and property owners should look for support from a lawyer or housing therapist in checking out potential legal defenses to the suit. Homeowners need to likewise understand their general rights and commitments highlighted listed below.

Throughout the Foreclosure Process

You can remain in your home and the task 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 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 evaluation and react to files you receive from the complainant or the court in your foreclosure case. A failure to react or appear in court when needed to do so might make it easier for the plaintiff to reveal that your residential or commercial property is vacant and deserted, which could put you at danger of an expedited foreclosure.

You have a right to be represented by a lawyer and might be eligible for complimentary legal or housing therapy services.

You have a right to be devoid of harassment or foreclosure scams. Strongly think about speaking with an attorney or housing therapist, if readily available, 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 prevent foreclosure if you repay your loan in complete 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 informed a minimum of 90 days before a foreclosure fit is submitted informing you that you are in default and at danger of foreclosure. You have the right to check out "loss mitigation" alternatives that may permit you to keep your home and prevent lawsuits. The bank or mortgage servicer is needed to assist you understand your loss mitigation choices. If you have actually sent a finished loss mitigation application, your bank or mortgage servicer need to finish its review of your application before proceeding with the foreclosure suit.

RPAPL § 1303 has been changed to need complainants in foreclosure actions to supply a more particular and handy notice to borrowers concerning their rights and obligations during the foreclosure process. Specifically, the notice must indicate that homeowners have the right to remain in their homes up until a foreclosure sale takes place and the obligation to preserve their residential or commercial property and pay relevant taxes until such time. This section is meant to assist avoid residential or commercial properties from becoming uninhabited in the first location. Read the specific language needed by RPAPL § 1303.

RPAPL § 1304 requires mortgage creditors to give customers a minimum of ninety days' notification before beginning a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") must consist of the following language: "As of ___, your mortgage is ___ days in default ... You can cure this default by making the payment of ___ dollars by ___." Unfortunately, borrowers often analyzed this arrangement to suggest that as long as the debtor provided the mentioned amount by the date specified, the loan would be renewed. Frequently, the "remedy date" defined in the PFN is the earliest date on which the creditor can start a foreclosure action, which is 90 days after sending the PFN. When the debtor waits a full 90 days to supply the amount defined, any missed out on payments and associated interest and charges from the intervening months would be included to the shortage. In such a case, the borrower who submits the amount stated in the PFN would remain in default due to stepping in accruals, regardless of his or her good-faith efforts to attend to the default specified in the PFN.

The new law addresses this concern by changing the very first line of the notice to read "As of ____ your mortgage is ____ days and ___ dollars in default." Similarly, it includes language to RPAPL § 1304 which highlights the debtor's ongoing rights and obligations throughout the foreclosure process. Read the brand-new pre-foreclosure notification language.

Once a Foreclosure Action Begins

You have the right to get a copy of the legal documents in the foreclosure claim 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 1 month if served on you by other ways. The Answer is your opportunity to mention your defenses.

You should seek advice from a lawyer or housing counselor for help in this process.

You have an obligation to appear at all arranged court appearances. If you stop working to appear, you risk losing essential rights, which might cause the loss of the case and your home.

You have a right to demand court authorization 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 an obligation to bring all essential files to the settlement conference. For a general list of required documents, check out the Mandatory Settlement Conference details page.

Both parties must work out in "excellent faith", which means honestly and fairly. If you fail to do so, you might lose the opportunity to pursue a court-supervised settlement. If the bank or mortgage servicer fails to do so, the court might enforce likewise substantial penalties. Negotiating in excellent faith does not require either celebration to settle.

If you formerly failed to send a Response, 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 settling a settlement, the lis pendens classification on your residential or commercial property, which alerts individuals that title to your residential or commercial property is in conflict, must be raised.

You might be accountable for extra taxes if you reach a settlement that consists of financial obligation forgiveness. Consult from a tax expert about any resulting tax effects.

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 submit an application with the court for the surplus funds, subject to specific due dates. It is very important to seek aid from a legal company if you think you are owed a surplus.

If the home is cost less than what you owe, the loan provider may file an application for a judgment versus you for the difference, understood as a shortage judgment. You may have the right to object to the amount of any shortage judgment, including interest and penalties.

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

Housing counselors that deal with foreclosure-related issues can give you advice on your options and resources at little or no charge. They may also have the ability to work out with your loan provider for complimentary and assist you discover free legal services in your location.

Housing therapy resources for New Yorkers consist of:

- New York's Homeowner Protection Program (HOPP), which links with housing therapists 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 therapists by county here, on the DFS website.
24-Hour assistance is 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 totally free help.
If you reside in New york city City, you can also call 311.

If you remain in a foreclosure court case, you should speak with a lawyer.

Seek Legal Assistance

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

If you can not pay for a personal lawyer, resources free of charge or low-cost legal help consist of:

- New York's Homeowner Protection Program (HOPP), which gets in touch with housing counselors and legal services at no expense. Call the HOPP hotline at (855) 466-3456 or go to homeownerhelpny.com.
The New York State Bar Association's Lawyer Referral and Information Service.
The Legal Service Corporation site. LawHelp.org, an online directory of free legal provider in New york city.
forumcu.com