Help for Homeowners: Foreclosure Bill Of Rights

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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.
Looking for Insurance.
Managing and Mitigating Losses

Residential Foreclosure Actions Consumer Bill of Rights

This Residential Foreclosure Actions Consumer Bill of Rights provides guidance to homeowners facing foreclosure in New York. A foreclosure is a lawsuit, and homeowners should look for support from an attorney or housing therapist in exploring potential legal defenses to the fit. Homeowners ought to also know their general rights and obligations highlighted below.

Throughout the Foreclosure Process

You have the right to remain in your home and the duty 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) may have the ability to foreclose on your residential or commercial property through an expedited process in court. To prevent this result, remain in your home and carefully evaluation and react to documents you receive 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 plaintiff to reveal that your residential or commercial property is uninhabited and deserted, which could put you at risk of an expedited foreclosure.

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

You have a right to be free from harassment or foreclosure scams. Strongly consider talking to an attorney or housing therapist, if readily available, 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 complainant.

Before a Foreclosure Action Begins in Court

You have a right to be alerted at least 90 days before a foreclosure fit is filed informing you that you are in default and at danger of foreclosure. You deserve to check out "loss mitigation" choices that might permit you to keep your home and avoid litigation. The bank or mortgage servicer is required to assist you comprehend your loss mitigation options. If you have sent a finished loss mitigation application, your bank or mortgage servicer should finish its review of your application before continuing with the foreclosure match.

RPAPL § 1303 has actually been modified to need plaintiffs in foreclosure actions to offer a more particular and practical notice to debtors concerning their rights and obligations throughout the foreclosure process. Specifically, the notice needs to show that property owners can stay in their homes till a foreclosure sale happens and the commitment to maintain their residential or commercial property and pay suitable taxes until such time. This section is intended to help avoid residential or commercial properties from becoming vacant in the first location. Read the specific language needed by RPAPL § 1303.

RPAPL § 1304 requires mortgage lenders to give debtors at least ninety days' notice before starting 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 treat this default by making the payment of ___ dollars by ___." Unfortunately, debtors typically interpreted this arrangement to indicate that as long as the borrower provided the mentioned quantity by the date defined, the loan would be renewed. On a regular basis, the "treatment date" defined in the PFN is the earliest date on which the lender can begin a foreclosure action, which is 90 days after sending out the PFN. When the borrower waits a complete 90 days to offer the quantity defined, any missed out on payments and associated interest and costs from the intervening months would be added to the shortage. In such a case, the borrower who sends the quantity stated in the PFN would remain in default due to intervening 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 modifying the first line of the notice to check out "Since ____ your mortgage is ____ days and ___ dollars in default." Similarly, it adds language to RPAPL § 1304 which highlights the debtor's ongoing rights and obligations throughout the foreclosure procedure. Read the new pre-foreclosure notice language.

Once a Foreclosure Action Begins

You deserve to get a copy of the legal papers in the foreclosure suit when it begins. This is referred to as "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 methods. The Answer is your chance to specify your defenses.

You need to talk to a lawyer or housing therapist for help in this procedure.

You have a commitment to appear at all set up 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 request court consent to proceed without paying court expenses.

At a Mandatory Settlement Conference

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

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

Both parties need to negotiate in "great faith", which suggests 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 might impose likewise substantial charges. Negotiating in excellent faith does not need either celebration to settle.

If you formerly failed to submit a Response, you will be offered 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 warns individuals that title to your residential or commercial property is in disagreement, must be raised.

You may be accountable for additional taxes if you reach a settlement that includes debt forgiveness. Consult from a tax expert about any resulting tax consequences.

After Judgment of Foreclosure and Sale

Upon a judgment of foreclosure and sale, the 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 file an application with the court for the surplus funds, subject to certain deadlines. It is essential to look for help from a legal service provider if you believe you are owed a surplus.

If the home is offered for less than what you owe, the loan provider might submit an application for a judgment against you for the difference, called a shortage judgment. You might can contest the quantity of any shortage judgment, consisting of interest and penalties.

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

Housing therapists that deal with foreclosure-related concerns can provide you suggestions on your choices and resources at little or no expense. They might also have the ability to work out with your lender totally free and assist you discover totally free legal services in your area.

Housing counseling resources for New Yorkers consist of:

- New york city's Homeowner Protection Program (HOPP), which links with housing therapists and legal at no charge. Call the HOPP hotline at (855) 466-3456 or go to homeownerhelpny.com.
You can discover a list of approved non-profit housing counselors by county here, on the DFS site.
24-Hour help 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 investors that supply totally free help.
If you live in New york city City, you can likewise call 311.

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

Seek Legal Assistance

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

If you can not manage a personal lawyer, resources for totally free or inexpensive legal support include:

- New york city's Homeowner Protection Program (HOPP), which links with housing therapists and legal services at no expense. 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 site. LawHelp.org, an online directory of totally free legal service companies in New york city.