Help for Homeowners: Foreclosure Bill Of Rights

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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.
Searching for Insurance.
Managing and Mitigating Losses

Residential Foreclosure Actions Consumer Bill of Rights

This Residential Foreclosure Actions Consumer Bill of Rights offers assistance to homeowners facing foreclosure in New York. A foreclosure is a suit, and house owners need to look for help from a lawyer or housing counselor in exploring possible legal defenses to the match. Homeowners should also understand their general rights and obligations highlighted listed below.

Throughout the Foreclosure Process

You have the right to stay in your home and the responsibility to preserve your residential or commercial property unless and until a court orders you to leave. If you desert your home, the complainant (bank or mortgage servicer) may have the ability to foreclose on your residential or commercial property through an expedited process in court. To prevent this result, remain in your home and thoroughly evaluation and react to documents you get 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 simpler for the plaintiff to show that your residential or commercial property is uninhabited and abandoned, which could put you at risk of a sped up foreclosure.

You have a right to be represented by an attorney and might be eligible totally free legal or housing counseling services.

You have a right to be free from harassment or foreclosure scams. Strongly think about speaking with a lawyer or housing therapist, if 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 avoid foreclosure if you repay your loan in full at any time previous 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 alerted at least 90 days before a foreclosure match is submitted notifying you that you are in default and at danger of foreclosure. You deserve to check out "loss mitigation" choices that might enable you to keep your home and . The bank or mortgage servicer is needed to assist you understand your loss mitigation choices. If you have actually submitted a completed loss mitigation application, your bank or mortgage servicer must finish its review of your application before continuing with the foreclosure match.

RPAPL § 1303 has actually been amended to require plaintiffs in foreclosure actions to offer a more particular and useful notification to customers regarding their rights and responsibilities during the foreclosure process. Specifically, the notice must suggest that property owners can stay in their homes up until a foreclosure sale takes place and the commitment to keep their residential or commercial property and pay relevant taxes until such time. This section is intended to help avoid residential or commercial properties from ending up being vacant in the very first place. Read the particular language needed by RPAPL § 1303.

RPAPL § 1304 requires mortgage financial institutions to provide debtors a minimum of ninety days' notice before commencing a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") must include the following language: "Since ___, your mortgage is ___ days in default ... You can cure this default by making the payment of ___ dollars by ___." Unfortunately, debtors often analyzed this provision to imply that as long as the customer supplied the specified quantity by the date defined, the loan would be reinstated. On a regular basis, the "remedy date" specified in the PFN is the earliest date on which the financial institution can begin a foreclosure action, which is 90 days after sending the PFN. When the borrower waits a complete 90 days to offer 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 debtor who submits the amount stated in the PFN would stay in default due to intervening accruals, regardless of his/her good-faith efforts to resolve the default defined in the PFN.

The new law addresses this issue by amending 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 continuous rights and responsibilities throughout the foreclosure procedure. Read the new pre-foreclosure notice language.

Once a Foreclosure Action Begins

You deserve to receive 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 thirty days if served on you by other methods. The Answer is your chance to mention your defenses.

You ought to talk to an attorney or housing therapist for aid in this process.

You have a responsibility to appear at all set up court appearances. If you fail to appear, you run the risk of losing important rights, which could lead to the loss of the case and your home.

You have a right to request court approval to continue without paying court expenses.

At an Obligatory Settlement Conference

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

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

Both celebrations must negotiate in "excellent faith", which means truthfully and relatively. If you fail to do so, you might lose the chance to pursue a court-supervised settlement. If the bank or mortgage servicer stops working to do so, the court may impose likewise significant penalties. Negotiating in great faith does not need either party to settle.

If you formerly failed to submit a Response, you will be given an additional 1 month to do so at the settlement conference.

After Settlement Agreement or Fully Executed Loss Mitigation Agreement

Within 90 days of finalizing a settlement, the lis pendens classification on your residential or commercial property, which warns people that title to your residential or commercial property remains in dispute, must be raised.

You may be accountable for additional taxes if you reach a settlement that includes financial obligation forgiveness. Consult from a tax professional 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 submit an application with the court for the surplus funds, subject to specific due dates. It is crucial to seek assistance from a legal service company if you believe 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 against you for the distinction, understood as a shortage judgment. You may have the right to contest the quantity of any shortage judgment, consisting of interest and charges.

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

Housing counselors that deal with foreclosure-related issues can give you guidance on your choices and resources at little or no charge. They might likewise be able to negotiate with your lending institution for complimentary and assist you find totally free legal services in your location.

Housing counseling resources for New Yorkers include:

- New York's Homeowner Protection Program (HOPP), which gets in touch with housing counselors and legal services at no charge. Call the HOPP hotline at (855) 466-3456 or visit homeownerhelpny.com.
You can find a list of approved non-profit housing therapists by county here, on the DFS website.
24-Hour help 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 supply totally free help.
If you reside in New york city City, you can also call 311.

If you are in a foreclosure lawsuit, you must consult a lawyer.

Seek Legal Assistance

Contact an attorney and review your mortgage documents. Make certain your loan is not in offense of any laws. If you do not have an attorney, the New york city State Bar Association might be able to refer you to a suitable lawyer for your scenario.
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If you can not afford a personal lawyer, resources for free or low-priced legal help consist of:

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