Help for Homeowners: Foreclosure Bill Of Rights

More ...
Applications &
Application Fees & Assessments
Pharmacy Benefit Managers
Banks and Trusts
Insurance Agents & Brokers
Insurance provider
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 Problem 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 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.
Just 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 supplies guidance to house owners facing foreclosure in New york city. A foreclosure is a claim, and homeowners must seek help from an attorney or housing therapist in checking out potential legal defenses to the suit. Homeowners ought to also understand their general rights and responsibilities highlighted listed below.

Throughout the Foreclosure Process

You have the right to remain in your home and the responsibility to maintain your residential or commercial property unless and until a court orders you to abandon. If you abandon 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 result, remain in your home and thoroughly review and react to files 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 could make it easier for the plaintiff to show that your residential or commercial property is vacant and deserted, which could put you at threat of an accelerated foreclosure.

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

You have a right to be devoid of harassment or foreclosure rip-offs. Strongly think about consulting with an attorney or housing therapist, if offered, 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 completely at any time prior to the sale of your home, or if you work out a settlement with the complainant.

Before a Foreclosure Action Begins in Court

You have a right to be informed 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 might permit you to keep your home and avoid lawsuits. The bank or mortgage servicer is required to help you understand your loss mitigation choices. If you have sent a finished loss mitigation application, your bank or mortgage servicer should complete its evaluation of your application before continuing with the foreclosure suit.

RPAPL § 1303 has been changed to need plaintiffs in foreclosure actions to offer a more specific and useful notification to customers concerning their rights and commitments throughout the foreclosure procedure. Specifically, the notice must indicate that property owners deserve to stay in their homes until a foreclosure sale takes place and the responsibility to maintain their residential or commercial property and pay relevant taxes up until such time. This area is planned to help prevent residential or commercial properties from ending up being uninhabited in the first location. Read the particular language needed by RPAPL § 1303.

RPAPL § 1304 requires mortgage creditors to give borrowers a minimum of ninety days' notice before starting 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 treat this default by making the payment of ___ dollars by ___." Unfortunately, customers frequently analyzed this arrangement to mean that as long as the debtor provided the stated quantity by the date specified, the loan would be renewed. Frequently, the "treatment date" specified in the PFN is the earliest date on which the financial institution can start a foreclosure action, which is 90 days after sending the PFN. When the customer waits a complete 90 days to supply the amount defined, any missed payments and associated interest and fees from the intervening months would be included to the shortage. In such a case, the customer who submits the amount set forth in the PFN would remain 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 new law addresses this problem by amending the first line of the notification to read "Since ____ your mortgage is ____ days and ___ dollars in default." Similarly, it adds language to RPAPL § 1304 which highlights the customer'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 receive a copy of the legal documents in the foreclosure claim when it begins. This is known as "service" of the Summons and Complaint. You must react to the Summons and Complaint with an "Answer" within 20 days after you have actually been personally served, and within 1 month if served on you by other methods. The Answer is your opportunity to specify your defenses.

You need to talk to an attorney or housing therapist for help in this process.

You have a responsibility to appear at all scheduled court looks. If you stop working to appear, you run the risk of losing important rights, which might cause the loss of the case and your home.

You have a right to demand court authorization to proceed without paying court costs.

At a Compulsory Settlement Conference

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

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

Both parties must negotiate in "great faith", which means honestly and relatively. If you fail to do so, you may lose the opportunity to pursue a court-supervised settlement. If the bank or mortgage servicer stops working to do so, the court may impose 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 thirty days 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 classification on your residential or commercial property, which alerts individuals that title to your residential or commercial property is in dispute, need to be raised.

You might be accountable for extra 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 particular deadlines. It is essential to look for assistance from a legal company if you think you are owed a surplus.

If the home is cost less than what you owe, the lender may file an application for a judgment against you for the distinction, known as a shortage judgment. You might have the right to object to the quantity of any deficiency judgment, consisting of interest and charges.

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

Housing therapists that handle foreclosure-related problems can give you guidance on your alternatives and resources at little or no charge. They might likewise have the ability to work out with your loan provider totally free and help you find free legal services in your location.

Housing counseling resources for New Yorkers consist of:

- New york city's Homeowner Protection Program (HOPP), which links with housing counselors and legal services at no expense. Call the HOPP hotline at (855) 466-3456 or go to homeownerhelpny.com.
You can find a list of approved non-profit housing therapists by county here, on the DFS site.
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 approved counseling representatives, servicers, and financiers that supply complimentary assistance.
If you live in New york city City, you can also call 311.

If you are in a foreclosure court case, you should speak with an attorney.

Seek Legal Assistance

Contact a lawyer and examine your mortgage documents. Ensure your loan is not in infraction of any laws. If you do not have an attorney, the New York State Bar Association may have the ability to refer you to an appropriate lawyer for your scenario.

If you can not afford a personal attorney, resources free of charge or low-cost legal assistance 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 check out homeownerhelpny.com.
The New York City State Bar Association's Lawyer Referral and Information Service.
The Legal Service Corporation site. LawHelp.org, an online directory site of totally free legal provider in New York.
bloglines.com