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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
- A Renter'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 provides assistance to property owners facing foreclosure in New york city. A foreclosure is a lawsuit, and house owners should look for assistance from an attorney or housing counselor in exploring prospective legal defenses to the fit. Homeowners should likewise know their basic rights and obligations highlighted listed below.
Throughout the Foreclosure Process
You deserve to remain in your home and the duty to preserve your residential or commercial property unless and until a court orders you to abandon. If you desert your home, the complainant (bank or mortgage servicer) might have the ability to foreclose on your residential or commercial property through an expedited procedure in court. To prevent this outcome, remain in your home and thoroughly evaluation and react to files you receive from the plaintiff or the court in your foreclosure case. A failure to respond or appear in court when required 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 risk of a sped up foreclosure.
You have a right to be represented by an attorney and may be qualified for free legal or housing counseling services.
You have a right to be totally free from harassment or foreclosure frauds. Strongly think about speaking with a lawyer or housing therapist, if offered, 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 avoid foreclosure if you repay your loan completely at any time previous to the sale of your home, or if you work out 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 match is submitted notifying you that you are in default and at danger of foreclosure. You can check out "loss mitigation" options that might permit you to keep your home and avoid lawsuits. The bank or mortgage servicer is required to help you understand your loss mitigation alternatives. 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 modified to need complainants in foreclosure actions to supply a more particular and useful notification to borrowers regarding their rights and responsibilities throughout the foreclosure procedure. Specifically, the notification should suggest that house owners have the right to remain in their homes up until a foreclosure sale occurs and the responsibility to maintain their residential or commercial property and pay suitable taxes up until such time. This section is meant to assist avoid residential or commercial properties from ending up being uninhabited in the very first place. Read the particular language needed 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") must include the following language: "As of ___, your mortgage is ___ days in default ... You can cure this default by making the payment of ___ dollars by ___." Unfortunately, debtors frequently analyzed this provision to suggest that as long as the customer supplied the stated amount by the date specified, the loan would be reinstated. Quite often, the "treatment date" specified 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 specified, any missed out on payments and associated interest and charges from the intervening months would be contributed to the shortage. In such a case, the borrower who submits the amount set forth in the PFN would remain in default due to intervening accruals, despite his or her good-faith efforts to resolve the default specified in the PFN.
The new law addresses this concern by changing the very first line of the notice to read "Since ____ your mortgage is ____ days and ___ dollars in default." Similarly, it adds language to RPAPL § 1304 which highlights the customer's continuous rights and responsibilities throughout the foreclosure procedure. Read the new pre-foreclosure notice language.
Once a Foreclosure Action Begins
You deserve to get a copy of the legal papers in the foreclosure lawsuit when it begins. This is called "service" of the Summons and Complaint. You should react to the Summons and Complaint with an "Answer" within 20 days after you have actually been personally served, and within 30 days if served on you by other means. The Answer is your opportunity to mention your defenses.
You must seek advice from a lawyer or housing counselor for assistance in this procedure.
You have a commitment to appear at all set up court looks. If you stop working to appear, you run the risk of losing crucial rights, which could lead to the loss of the case and your home.
You have a right to request court consent 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 versus you.
Both celebrations have an obligation to bring all necessary files to the settlement conference. For a basic list of needed files, check out the Mandatory Settlement Conference information page.
Both celebrations must work out in "great faith", which indicates honestly and relatively. 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 likewise considerable charges. Negotiating in great faith does not require either celebration to settle.
If you formerly failed to send a Response, you will be offered an extra one month 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 designation on your residential or commercial property, which warns people that title to your residential or commercial property is in dispute, need to be raised.
You may be responsible for additional taxes if you reach a settlement that consists of financial obligation forgiveness. Seek recommendations from a tax professional about any resulting tax consequences.
After Judgment of Foreclosure and Sale
Upon a judgment of foreclosure and sale, the brand-new owner can seek 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 certain due dates. It is necessary to seek assistance from a legal provider if you think you are owed a surplus.
If the home is cost less than what you owe, the lending institution may file an application for a judgment versus you for the distinction, called a deficiency judgment. You might deserve to object to 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 issues can give you recommendations on your options and resources at little or no charge. They may likewise have the ability to negotiate with your lending institution free of charge and assist you find complimentary legal services in your location.
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 go to homeownerhelpny.com.
- You can find a list of authorized non-profit housing counselors by county here, on the DFS site.
- 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 offer complimentary support.
- If you reside in New York City, you can also call 311.
If you are in a foreclosure lawsuit, you ought to seek advice from an attorney.
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 an attorney, the New York State Bar Association might have the ability to refer you to a proper lawyer for your scenario.
If you can not pay for a private attorney, resources free of charge or low-cost legal help include:
- New york city'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 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 complimentary legal company in New york city.
