When Is A Mortgage Payment Considered Past Due In New York?

The point at which a mortgage payment is considered past due varies from lender to lender and it also varies depending on the terms of the mortgage. Most standard mortgages do allow a lender to bring a foreclosure proceeding when the borrower has not adhered to the terms of the mortgage and the lender has provided notice to the purchasers. As a practical matter, the lender is probably not going to start foreclosure proceedings until you are very significantly past due on the mortgage payments.

What Should I Do If Served With A Foreclosure Summons In New York?

When you are served with a summons for a foreclosure action, it is going to be accompanied by a complaint. You have approximately 30 days to respond to that complaint. It is suggested that you consult with a foreclosure defense attorney as soon as possible after you are served with a summons and complaint, so you can respond to that complaint in a timely matter. It is very important not to ignore the lawsuit and to avoid having a default judgment issued against you.

It is likewise important to promptly seek legal assistance. Mortgage foreclosure defense attorneys can assist you not only in the litigation but also with negotiations with your lender to try to work out a mortgage modification that you can afford. In the greater New York City area, if the homeowner does defend the foreclosure lawsuit, the lender is required to engage in settlement negotiations with the purchaser and both the lender and the borrower are required to make a good faith effort to try to work out some sort of a reasonable modification to the mortgage.

Can I Delay The Foreclosure From Going Forward?

Homeowners who are facing foreclosure may file bankruptcy and filing a bankruptcy action will automatically stay (or pause) the foreclosure action. Before you decide to file for bankruptcy, however, you should consult with a bankruptcy attorney and understand all the pros and cons of filing for bankruptcy and the effect it will have on you.

Defending the foreclosure with an experienced attorney can also sometimes help to delay the foreclosure because the litigation process takes time. Some courts have a lot of cases and courts often take a significant amount of time to adjudicate. However, you should keep in mind that the Court is going to do their best to make sure that the case does progress at a reasonable pace. The best course of action to defend the foreclosure is to be honest and transparent, talk to your attorney about the best way to defend the action, to show up in court when required, and unless you have a great defense to the action, to attempt to negotiate a reasonable settlement or mortgage modification with the lender.

What Actually Happens To My Home In A Foreclosure Proceeding?

In a foreclosure proceeding, the plaintiff, which is the lender, is going to start a lawsuit and they are also going to file a notice of pendency (also referred to as a Lis Pendens) with the county clerk. This will give notice to any potential buyers that the property is involved in litigation, which will make it very difficult to sell the property after the foreclosure action is commenced. Most of the time nothing happens to the house during the litigation process. You can continue to live there during the lawsuit and the bank should not do anything to affect your use and enjoyment of the property. However, if the lender is able to obtain a judgment of foreclosure, eventually the house is going to be sold at a foreclosure auction. Once the new buyer has title to the house, they can commence an eviction proceeding and evict you from the property.

At The End Of The Foreclosure Will, I Owe The Financial Institution Any Money?

If the lender sells the house for less than you owe them on the mortgage, they may go after you for the difference of what is owed to them. You should be aware of this possibility, especially if you do have a lot of other assets and owe the lender a substantial amount, even after the foreclosure sale.

For more information on Past Due Mortgage Payments In New York City, a consultation is your next best step. Get the information and legal answers you are seeking by calling (800) 619-3570 today.