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 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.
- 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 property owners facing foreclosure in New York. A foreclosure is a suit, and property owners ought to seek help from an attorney or housing therapist in exploring prospective legal defenses to the match. Homeowners need to likewise know their general rights and commitments highlighted below.


Throughout the Foreclosure Process


You deserve to stay in your home and the duty 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 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 required to do so might make it much easier for the complainant to reveal that your residential or commercial property is vacant and abandoned, which might put you at danger of an accelerated foreclosure.


You have a right to be represented by an attorney and might be qualified for complimentary legal or housing therapy services.


You have a right to be complimentary from harassment or foreclosure scams. Strongly consider seeking advice from 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 avoid foreclosure if you repay your loan in full at any time previous 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 alerted a minimum of 90 days before a foreclosure match is filed informing you that you remain in default and at danger of foreclosure. You deserve to check out "loss mitigation" options that might permit you to keep your home and prevent litigation. The bank or mortgage servicer is needed to help you comprehend your loss mitigation . If you have actually sent a finished loss mitigation application, your bank or mortgage servicer should finish its review of your application before proceeding with the foreclosure suit.


RPAPL § 1303 has actually been amended to require plaintiffs in foreclosure actions to supply a more particular and helpful notification to borrowers concerning their rights and responsibilities throughout the foreclosure procedure. Specifically, the notice should show that house owners deserve to remain in their homes up until a foreclosure sale happens and the responsibility to keep their residential or commercial property and pay applicable taxes up until such time. This section is intended to help avoid residential or commercial properties from ending up being vacant in the first location. Read the specific language required by RPAPL § 1303.


RPAPL § 1304 needs mortgage lenders to provide debtors a minimum of ninety days' notification before beginning a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") must 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, debtors often analyzed this arrangement to suggest that as long as the borrower supplied the mentioned quantity by the date defined, the loan would be renewed. Quite often, the "treatment date" specified in the PFN is the earliest date on which the creditor can begin a foreclosure action, which is 90 days after sending the PFN. When the customer waits a full 90 days to supply the quantity defined, any missed payments and associated interest and charges from the intervening months would be contributed to the shortage. In such a case, the borrower who sends the amount stated in the PFN would stay in default due to intervening accruals, regardless of his/her good-faith efforts to resolve the default specified in the PFN.


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


Once a Foreclosure Action Begins


You can get a copy of the legal documents in the foreclosure suit when it starts. This is referred to as "service" of the Summons and Complaint. You need to respond to the Summons and Complaint with an "Answer" within 20 days after you have actually been personally served, and within 1 month if served on you by other means. The Answer is your chance to specify your defenses.


You ought to speak with an attorney or housing counselor for assistance in this process.


You have an obligation to appear at all set up court looks. If you stop working to appear, you run the risk of losing important rights, which might lead to the loss of the case and your home.


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


At an Obligatory Settlement Conference


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


Both parties have an obligation to bring all necessary documents to the settlement conference. For a basic list of required files, check out the Mandatory Settlement Conference info page.


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


If you previously stopped working to submit an Answer, you will be offered an extra thirty 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 classification on your residential or commercial property, which cautions people that title to your residential or commercial property is in dispute, should be raised.


You may be accountable for extra taxes if you reach a settlement that includes debt forgiveness. Consult from a tax professional 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 important to look for assistance from a legal provider if you believe you are owed a surplus.


If the home is cost less than what you owe, the lending institution might file an application for a judgment against you for the difference, known as a shortage judgment. You may deserve to contest the quantity of any shortage judgment, consisting of interest and penalties.


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


Housing therapists that handle foreclosure-related problems can give you guidance on your options and resources at little or no charge. They might also have the ability to work out with your lending institution free of charge and assist you discover totally free legal services in your location.


Housing counseling resources for New Yorkers consist of:


- New York's Homeowner Protection Program (HOPP), which gets in touch with housing counselors and legal services at no expense. Call the HOPP hotline at (855) 466-3456 or visit homeownerhelpny.com.
- You can discover a list of authorized non-profit housing therapists by county here, on the DFS website.
- 24-Hour support 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 provide complimentary help.
- If you live in New York City, you can likewise call 311.


If you remain in a foreclosure court case, you ought to seek advice from a lawyer.


Seek Legal Assistance


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


If you can not manage a personal lawyer, resources free of charge or low-cost legal support consist of:


- New York's Homeowner Protection Program (HOPP), which links with housing therapists and legal services at no cost. Call the HOPP hotline at (855) 466-3456 or go to homeownerhelpny.com.
- The New York City State Bar Association's Lawyer Referral and Information Service.
- The Legal Service Corporation site.
LawHelp.org, an online directory site of totally free legal service providers in New York.
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