Help for Homeowners: Foreclosure Bill Of Rights

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Help for Homeowners
wikipedia.org
- 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 assistance to homeowners dealing with foreclosure in New York. A foreclosure is a suit, and house owners must seek support from a lawyer or housing therapist in exploring potential legal defenses to the match. Homeowners must also know their basic rights and obligations highlighted below.

Throughout the Foreclosure Process

You have the right 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) may have the ability to foreclose on your residential or commercial property through an expedited procedure in court. To prevent 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 much easier for the complainant 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 may be qualified free of charge legal or housing therapy services.

You have a right to be totally free from harassment or foreclosure frauds. Strongly think about consulting with an attorney or housing counselor, 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 completely 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 at least 90 days before a foreclosure fit is filed informing you that you are in default and at threat of foreclosure. You deserve to explore "loss mitigation" choices that may permit you to keep your home and avoid litigation. The bank or mortgage servicer is required to assist you understand your loss mitigation alternatives. If you have sent a finished loss mitigation application, your bank or mortgage servicer must finish its review of your application before proceeding with the foreclosure match.

RPAPL § 1303 has been amended to require complainants in foreclosure actions to provide a more particular and useful notice to customers concerning their rights and obligations throughout the foreclosure process. Specifically, the notice should show that property owners can stay in their homes till a foreclosure sale takes place and the commitment to keep their residential or commercial property and pay appropriate taxes until such time. This section is planned to assist prevent residential or commercial properties from becoming uninhabited in the very first location. Read the specific language needed by RPAPL § 1303.

RPAPL § 1304 needs mortgage lenders to provide borrowers at least 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 treat this default by making the payment of ___ dollars by ___." Unfortunately, customers typically translated this provision to indicate that as long as the borrower provided the specified quantity by the date specified, the loan would be renewed. Frequently, the "cure 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 complete 90 days to offer the quantity specified, any missed out on payments and associated interest and fees from the intervening months would be included to the shortage. In such a case, the borrower who submits the in the PFN would stay in default due to stepping in accruals, despite his or her good-faith efforts to resolve the default specified in the PFN.

The new law addresses this problem by changing the very first line of the notice to check out "As of ____ your mortgage is ____ days and ___ dollars in default." Similarly, it adds language to RPAPL § 1304 which highlights the debtor's continuous rights and duties throughout the foreclosure procedure. Read the new pre-foreclosure notification language.

Once a Foreclosure Action Begins

You have the right to get a copy of the legal papers in the foreclosure lawsuit when it starts. This is understood as "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 ways. The Answer is your opportunity to specify your defenses.

You must speak with an attorney or housing therapist for assistance in this procedure.

You have a commitment to appear at all scheduled court appearances. If you fail to appear, you risk losing important rights, which could result in the loss of the case and your home.

You have a right to request court permission to continue without paying court costs.

At a Necessary Settlement Conference

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

Both parties have a responsibility to bring all required documents to the settlement conference. For a general list of needed documents, visit the Mandatory Settlement Conference information page.

Both celebrations need to negotiate in "great faith", which implies honestly and relatively. If you fail 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 may impose likewise significant penalties. Negotiating in great faith does not need either celebration to settle.

If you formerly stopped working to submit a Response, you will be provided 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 designation on your residential or commercial property, which alerts individuals that title to your residential or commercial property remains in conflict, must be raised.

You may be accountable for extra taxes if you reach a settlement that includes debt forgiveness. Seek recommendations from a tax professional about any resulting tax repercussions.

After Judgment of Foreclosure and Sale

Upon a judgment of foreclosure and sale, the brand-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, subject to particular due dates. It is important to look for assistance from a legal provider if you think you are owed a surplus.

If the home is cost less than what you owe, the loan provider might submit an application for a judgment versus you for the distinction, called 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 therapists that handle foreclosure-related problems can provide you recommendations on your alternatives and resources at little or no expense. They may also have the ability to work out with your loan provider totally free and assist you find free legal services in your area.

Housing counseling resources for New Yorkers include:

- New York's Homeowner Protection Program (HOPP), which connects with housing therapists and legal services at no charge. Call the HOPP hotline at (855) 466-3456 or visit homeownerhelpny.com.
You can discover a list of authorized non-profit housing counselors 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 approved counseling representatives, servicers, and financiers that provide free support.
If you live in New york city City, you can also call 311.

If you remain in a foreclosure court case, you must speak with an attorney.

Seek Legal Assistance

Contact an attorney and evaluate 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 might be able to refer you to a suitable lawyer for your circumstance.

If you can not manage a private lawyer, resources for totally free or affordable legal assistance include:

- New York's Homeowner Protection Program (HOPP), which links with housing counselors and legal services at no charge. 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.