Help for Homeowners: Foreclosure Bill Of Rights

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Help for Homeowners
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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.
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 house owners facing foreclosure in New York. A foreclosure is a claim, and house owners need to seek assistance from a lawyer or housing therapist in exploring potential legal defenses to the fit. Homeowners need to also understand their basic rights and obligations highlighted listed below.

Throughout the Foreclosure Process

You deserve to remain in your home and the task to keep your residential or commercial property unless and till a court orders you to abandon. If you desert your home, the complainant (bank or mortgage servicer) may be able to foreclose on your residential or commercial property through an expedited procedure in court. To avoid this outcome, remain in your home and carefully 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 simpler for the complainant to show that your residential or commercial property is uninhabited and deserted, which might put you at threat of an accelerated foreclosure.

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

You have a right to be devoid of harassment or foreclosure scams. Strongly consider seeking advice from a lawyer or housing counselor, 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 in complete at any time prior 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 alerted at least 90 days before a foreclosure match is filed informing you that you remain in default and at risk of foreclosure. You can explore "loss mitigation" options that may permit you to keep your home and avoid litigation. The bank or mortgage servicer is needed to assist you comprehend your loss mitigation options. If you have submitted a completed loss mitigation application, your bank or mortgage servicer need to complete its review of your application before continuing with the foreclosure suit.

RPAPL § 1303 has actually been amended to require complainants in foreclosure actions to offer a more specific and useful notification to customers concerning their rights and obligations during the foreclosure process. Specifically, the notice must indicate that homeowners deserve to stay in their homes up until a foreclosure sale happens and the responsibility to preserve their residential or commercial property and pay relevant taxes till such time. This area is intended to help avoid residential or commercial properties from becoming uninhabited in the first place. Read the specific language required by RPAPL § 1303.

RPAPL § 1304 needs mortgage lenders to provide customers a minimum of ninety days' notification before beginning a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") need to 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 typically analyzed this provision to mean that as long as the borrower offered the mentioned quantity by the date specified, the loan would be restored. Frequently, the "remedy date" specified in the PFN is the earliest date on which the lender can start a foreclosure action, which is 90 days after sending the PFN. When the customer waits a full 90 days to offer the amount defined, any missed out on payments and associated interest and charges from the stepping in months would be included to the deficiency. In such a case, the borrower who sends the quantity set forth in the PFN would remain in default due to intervening accruals, in spite of his or her good-faith efforts to deal with the default defined in the PFN.

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

Once a Foreclosure Action Begins

You deserve to receive a copy of the legal papers in the foreclosure claim when it starts. This is understood 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 opportunity to state your defenses.

You need to speak with an attorney or housing therapist for help in this procedure.

You have a commitment to appear at all scheduled 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 authorization 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 celebrations have a commitment to bring all essential files to the settlement conference. For a general list of required files, go to the Mandatory Settlement Conference info page.

Both parties need to negotiate in "great faith", which indicates honestly and fairly. If you stop working to do so, you might lose the chance to pursue a court-supervised settlement. If the bank or mortgage servicer fails to do so, the court might enforce likewise considerable charges. Negotiating in good faith does not require either party to settle.

If you formerly stopped working to submit a Response, you will be provided an extra 30 days to do so at the settlement conference.

After Settlement Agreement or Fully Executed Loss Mitigation Agreement

Within 90 days of settling a settlement, the lis pendens designation on your residential or commercial property, which alerts people that title to your residential or commercial property is in conflict, should be lifted.

You may be responsible for additional taxes if you reach a settlement that includes debt forgiveness. Seek advice 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, based on certain due dates. It is very important to seek help from a legal company if you believe 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 against you for the distinction, referred to as a deficiency judgment. You may can contest the amount of any shortage judgment, consisting of interest and penalties.

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

Housing therapists that handle foreclosure-related issues can provide you recommendations on your alternatives and resources at little or no charge. They may likewise have the ability to negotiate with your lending institution totally free and help you discover complimentary legal services in your area.

Housing counseling resources for New Yorkers include:

- New york city'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.
You can find a list of authorized non-profit housing therapists by county here, on the DFS site.
24-Hour assistance 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 financiers that supply totally free assistance.
If you live in New York City, you can also call 311.

If you remain in a foreclosure court case, you must consult a lawyer.

Seek Legal Assistance

Contact an attorney and review your mortgage documents. Ensure your loan is not in offense of any laws. If you do not have an attorney, the New York State Bar Association may be able to refer you to a proper attorney for your situation.

If you can not afford a private attorney, resources totally free or low-cost legal help consist of:

- 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 see 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 totally free legal service companies in New york city.