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.
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.
Shopping for Insurance.
Managing and Mitigating Losses

Residential Foreclosure Actions Consumer Bill of Rights

This Residential Foreclosure Actions Consumer Bill of Rights provides guidance to house owners dealing with foreclosure in New York. A foreclosure is a claim, and homeowners need to look for assistance from an attorney or housing counselor in exploring prospective legal defenses to the match. Homeowners must likewise understand their general rights and responsibilities highlighted listed below.

Throughout the Foreclosure Process

You can remain in your home and the responsibility to keep your residential or commercial property unless and up until a court orders you to leave. If you abandon your home, the plaintiff (bank or mortgage servicer) may be able to foreclose on your residential or commercial property through an expedited process in court. To avoid this result, remain in your home and thoroughly evaluation and react to documents you get from the plaintiff or the court in your foreclosure case. A failure to respond or appear in court when needed to do so could make it simpler for the complainant to reveal that your residential or commercial property is vacant and abandoned, which could put you at threat of a sped up foreclosure.

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

You have a right to be devoid of harassment or foreclosure frauds. Strongly think about consulting with an attorney or housing therapist, if available, before signing any papers. 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 complete at any time prior 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 notified at least 90 days before a foreclosure fit is filed informing you that you remain in default and at danger of foreclosure. You deserve to check out "loss mitigation" choices that might allow you to keep your home and avoid litigation. The bank or mortgage servicer is needed to assist you understand your loss mitigation alternatives. If you have actually sent a finished loss mitigation application, your bank or mortgage servicer need to complete its evaluation of your application before continuing with the foreclosure match.

RPAPL § 1303 has been changed to require plaintiffs in foreclosure actions to supply a more specific and valuable notice to customers concerning their rights and responsibilities during the foreclosure procedure. Specifically, the notice needs to show that house owners deserve to remain in their homes up until a foreclosure sale happens and the responsibility to preserve their residential or commercial property and pay suitable taxes until such time. This section is meant to help avoid residential or commercial properties from becoming vacant in the very first location. Read the specific language needed by RPAPL § 1303.

RPAPL § 1304 needs mortgage creditors to give 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 cure this default by making the payment of ___ dollars by ___." Unfortunately, borrowers typically interpreted this arrangement to indicate that as long as the borrower offered the stated quantity by the date specified, the loan would be renewed. 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 out the PFN. When the debtor waits a full 90 days to offer the quantity specified, any missed out on payments and associated interest and costs from the stepping in months would be contributed to the shortage. In such a case, the borrower who sends the amount set forth in the PFN would remain in default due to stepping in accruals, in spite of his/her good-faith efforts to resolve the default specified in the PFN.

The new law addresses this issue by changing 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 borrower's continuous rights and responsibilities throughout the foreclosure process. Read the new pre-foreclosure notification language.

Once a Foreclosure Action Begins

You deserve to receive a copy of the legal documents in the foreclosure claim 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 been personally served, and within thirty days if served on you by other ways. The Answer is your opportunity to specify your defenses.

You need to seek advice from with an attorney or housing therapist for assistance in this procedure.

You have an obligation to appear at all scheduled court looks. If you fail to appear, you run the risk of losing important rights, which could cause the loss of the case and your home.

You have a right to request court consent to proceed without paying court expenses.

At a Necessary Settlement Conference

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

Both parties have a commitment to bring all essential documents to the settlement conference. For a basic list of required documents, check out the Mandatory Settlement Conference information page.

Both celebrations must work out in "excellent faith", which suggests honestly and fairly. If you stop working to do so, you may lose the chance to pursue a court-supervised settlement. If the bank or mortgage servicer stops working to do so, the court might impose similarly significant charges. Negotiating in excellent faith does not need either party to settle.

If you formerly failed to send an Answer, you will be provided an extra 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 designation on your residential or commercial property, which cautions people that title to your residential or commercial property is in dispute, should be raised.

You might be accountable for extra taxes if you reach a settlement that includes debt forgiveness. Consult from a tax expert about any resulting tax repercussions.

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 file an application with the court for the surplus funds, based on particular deadlines. It is necessary to look for assistance from a legal service provider if you believe you are owed a surplus.

If the home is sold for less than what you owe, the lending institution may file an application for a judgment against you for the distinction, understood as a shortage judgment. You might deserve to contest the amount of any deficiency judgment, including interest and penalties.

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

Housing therapists that handle foreclosure-related concerns can give you recommendations on your choices and resources at little or no charge. They may likewise be able to negotiate with your loan provider totally free and assist you discover free legal services in your area.

Housing counseling resources for New Yorkers include:

- New York's Homeowner Protection Program (HOPP), which links with housing therapists and legal services at no charge. Call the HOPP hotline at (855) 466-3456 or check out homeownerhelpny.com.
You can find 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 representatives, servicers, and investors that supply totally free support.
If you live in New York City, you can likewise call 311.

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

Seek Legal Assistance

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

If you can not afford a private lawyer, resources for complimentary or affordable legal assistance include:

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