in nys how long before foreclosure do i have to get a bankruptcy lawyer

Can bankruptcy stop a foreclosure in New York?

In contrast, bankruptcy is federal law and in general treats foreclosure uniformly. In New York, bankruptcy may be able to help stop a foreclosure sale. Filing for Chapter 7 can potentially delay a foreclosure action for a number of months while a Chapter 13 bankruptcy can possibly save your home from foreclosure.

How long does a foreclosure case take in New York?

According to the New York State Department of Financial Services, an average foreclosure case takes about 445 days to be concluded in New York, with some taking much longer depending on the court in which the case was filed.

When does a bank have to foreclose in New York?

For an owner-occupied, one to four family dwelling, or a condominium unit, New York law requires the foreclosing bank to send a foreclosure notice to the borrower at least 90 days before starting the foreclosure. (N.Y. Real Prop. Acts. Law § 1304).

How long does the bankruptcy process affect a foreclosure?

If your home is in the process of being foreclosed on, the process will typically be legally postponed during the bankruptcy. The postponement usually lasts for 3 to 4 months but there are some exceptions when the bank or lender can continue with the foreclosure proceeding.

How long does it take to foreclose in New York?

The real estate foreclosure process in New York currently takes about 445 days (15 months) from the date of the first missed payment to the sale of the home. Following an unfavorable ruling and a foreclosure sale, the borrower will, in most cases, need to vacate the foreclosed property within 30 -120 days.

What is the foreclosure process in NY?

New York requires every lender foreclosing on a residential mortgage of an owner-occupied home to send a 90-day pre-foreclosure notice prior to commencing foreclosure. This notice must give you information about curing the default and also give you a list of government-approved counseling agencies to help you.

How long does a house stay in pre-foreclosure in New York?

In New York, the pre-foreclosure process lasts at least 120 days. Lenders will send a notice of default to the borrower 30 days after the late payment. Then, state law requires that lenders wait an additional 90 days after the first notice before filing a foreclosure complaint in court.

How long after default does the foreclosure process begin?

about 3-6 monthsIn general, mortgage companies start foreclosure processes about 3-6 months after the first missed mortgage payment. Late fees are charged after 10-15 days, however, most mortgage companies recognize that homeowners may be facing short-term financial hardships.

Is there a moratorium on foreclosures in NY?

The COVID-19 Emergency Eviction and Foreclosure Act of 2020, signed into law on December 28, 2020, places a “moratorium” on evictions and foreclosures, until May 1, 2021, for people experiencing a hardship related to COVID-19. Effective September 2, 2021, the moratorium was extended to January 15, 2022.

Is there a statute of limitations on foreclosure in NY?

Currently, a lender operating in New York has six years to initiate a foreclosure action, but if the action is dismissed for any reason, a lender can de-accelerate a loan and then reinitiate a foreclosure action.

How can I stop foreclosure in NY?

Avoiding Foreclosure (Loss Mitigation)Pay arrears, become current on the loan. ... Work out a period of loan forbearance. ... Loan modification. ... Refinance with another lender. ... Deed in lieu of foreclosure. ... Sell home, negotiate short sale.

What happens after foreclosure in NY?

The process ends with a foreclosure sale. The lender usually makes a bid on the property using what's called a "credit bid" rather than bidding cash. With a credit bid, the lender gets a credit up to the amount of the borrower's debt. The highest bidder at the sale becomes the new owner of the property.

Can a bank foreclose if payments are current?

While the homeowner's records may indicate that they have been paying the mortgage, they may not have been paying to the right bank. The cause may be a clerical error on the homeowner's part or that of one of the banks. Regardless, if the current lender is not getting the payments, foreclosure is possible.

Do banks want to foreclose?

Most often, a bank chooses to foreclose because the homeowner has stopped making monthly payments. They might also foreclose if the homeowner transfers the property to a different owner without the bank's permission or the homeowner isn't paying for property insurance.

At what stage of delinquency does a foreclosure proceedings start?

Usually, a foreclosure won't start until you're more than 120 days delinquent. Federal law generally prohibits a mortgage servicer from making the "first notice or filing" to start a judicial foreclosure or nonjudicial foreclosure until a borrower's mortgage loan obligation is more than 120 days delinquent.

How long does it take for the bank to repossess your house?

The foreclosure process is (normally) initiated after three or more months of missed payments from the debtor. A letter of demand can be sent if a bond is more than 20 days in arrears.

NY Foreclosure Timeline Explained

When you fall behind or stop making mortgage payments, it is important to understand the NY foreclosure timeline. Your lender could foreclose on your home but must follow certain legal requirements in order to do so.

NY Foreclosure Timeline

The NY foreclosure timeline can differ depending upon how quickly your mortgage lender acts. However, the general steps in the foreclosure process include the following:

How long does it take to get a foreclosure in New York?

According to the New York State Department of Financial Services, an average foreclosure case takes about 445 days to be concluded in New York, with some taking much longer depending on the court in which the case was filed.

How does a foreclosure in New York work?

New York law requires that all foreclosures go through the court system and be ordered by a judge before the lender can be granted ownership of your home. This judicial foreclosure process involves many different steps intended to protect your rights as a property owner, each of which takes time and cases can drag on.

How long does a foreclosure case last?

However, many cases can last for three or four years depending on the defenses raised, including a defense in which the homeowner is alleging they were the victim of a predatory lender. The complexity and nature of any specific legal defenses that your attorney raises will directly impact the length of your case.

Why are foreclosures delayed?

In fact, some homeowners and their attorneys have intentionally delayed their foreclosure cases to have more time to negotiate and prove that they could benefit from an alternative resolution , such as a mortgage loan modification.

How long does it take to get a foreclosure notice in New York?

90-Day Preforeclosure Notice. Under New York law, if the property is an owner-occupied, one-to-four family dwelling, or a condominium unit, the bank must send a notice by registered or certified mail and also by first-class mail at least 90 days before starting the foreclosure.

What happens if a bank gets a foreclosure?

What Happens If the Bank Gets a Foreclosure Judgment in New York. If the bank gets a default judgment, is granted summary judgment , or wins at trial, the court will enter a judgment permitting the bank to sell the home at a foreclosure sale. Notice of the sale is published in a newspaper and posted publicly (in some cases).

What happens if you fall behind on your mortgage payments?

If you fall far enough behind on your mortgage payments in New York, the bank (or the servicer on behalf of the bank) will start a judicial foreclosure. Judicial foreclosures go through the state court system, similar to any other type of lawsuit. At the end of the process, assuming you don’t successfully fight the foreclosure or work out a way to avoid it, your home is sold to a new owner at a foreclosure sale. The sale proceeds go towards repaying the money you borrowed.

What happens if you don't give 90 day notice to foreclosure?

If the lender or servicer doesn't send the 90-day notice at all or doesn't strictly comply with notice requirements, you might have a defense that could result in a dismissal of the foreclosure action.

When will the moratorium end in New York?

On December 28, 2020, Governor Andrew Cuomo signed the “ COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 ” (A11181/S09114) into law, which imposed a foreclosure moratorium until May 1, 2021, if the homeowner filed a hardship declaration. On May 3, 2021, the law was extended, and homeowners can now get a moratorium until August 31, 2021, if they file a hardship declaration with the mortgage lender or the foreclosing party (or its agent), or the foreclosing court. The law also prohibits local governments from conducting a tax foreclosure or tax lien sale in New York until August 31, 2021, if the homeowner files a COVID-19 hardship declaration with the applicable village, town, city, school district, county, or other entity or person that conducts tax foreclosures or tax lien sales. Also, various moratoriums protect homeowners with federally backed mortgage loans from foreclosure during the COVID-19 national crisis.

How long does it take to get a judgment from a bank?

Generally, you get 20 days to file an answer with the court if the complaint and summons are served in person or 30 days if service is by mail or another method. If you don’t respond to the suit, then the bank will ask for, and probably get, a default judgment (an automatic win).

What is the highest bid at a foreclosure?

Sometimes the bank bids the full amount of the debt owed, but sometimes it bids less than the full amount. If the bank's credit bid is the highest bid at the sale, then the bank becomes the new owner of the property.

What Does the NY Foreclosure Process Look Like?

New York is a judicial foreclosure state, which means the lender must file a lawsuit in court to foreclose on a home. In many cases, a foreclosure proceeding never makes it to court. Attorney Michael H. Schwartz has never lost a client’s house to foreclosure.

How To Respond to a NY Foreclosure Lawsuit

It is preferable to consult a foreclosure defense attorney and respond to a foreclosure complaint promptly. There are several alternatives to a foreclosure action that can be negotiated to help you stay in your home. The truth is, the lender would rather get paid than take your home from you.

Contact a White Plains Foreclosure Defense Attorney Today

Michael H. Schwartz, P.C., can help you take action to stay in your home if you face foreclosure. Our clients haven’t had a single discharge denied or lost a single home in foreclosure. You can fight foreclosure and get your fresh financial start.

How long does it take for a bank to send a foreclosure notice in New York?

For an owner-occupied, one to four family dwelling, or a condominium unit, New York law requires the foreclosing bank to send a foreclosure notice to the borrower at least 90 days before starting the foreclosure. ( N.Y. Real Prop. Acts. Law § 1304 ).

How does foreclosure work in New York?

How Does Foreclosure Work. In New York, the judicial foreclosure process is required in order for the lender to take back the home. This means that there is a formal process that must be adhered to whereupon the lender must file a lawsuit.

What is a trustee's sale notice?

A Notice of Trustee’s Sale informs homeowners and mortgage borrowers of record that their home will be sold at a trustee’s sale on a specific date and at a specific location. If the borrower never filed an Answer or a notice of appearance, the lender is not required to give notice of the sale to the borrower.

What happens if a borrower fails to file a foreclosure answer?

If the homeowner/defendant fails to file their answer timely, the borrower defaults and can no longer assert any defenses to the foreclosure lawsuit. The next step is that a Motion for Summary Judgment is filed by the lender.

What is a pre foreclosure notice?

The notice of default must contain specific language and must attach a list of at least five nonprofit agencies nearby for the borrower to contact for aid.

How long does it take for a foreclosure to be auctioned?

After the judge signs the Judgment of Foreclosure and Sale, the lender publishes a notice of sale about the auction in a newspaper at least 30 days before the auction date , and then may schedule an auction of the property by the referee.

How long does it take to pay a foreclosure?

The lender will send a “demand” letter or foreclosure letter to the borrower, in which they will give the borrower 30 days to pay the default amount owed, plus a late fee. This is called the Redemption Period.

Can A Bankruptcy Filing Stop a Foreclosure Sale in New York?

Home Bankruptcy Law Can A Bankruptcy Filing Stop a Foreclosure Sale in New York?

Can A Bankruptcy Filing Stop a Foreclosure Sale in New York?

In the United States, foreclosure laws may vary from state to state. In contrast, bankruptcy is federal law and in general treats foreclosure uniformly. In New York, bankruptcy may be able to help stop a foreclosure sale.

Why is My Bank Foreclosing on My Home?

A bank or lender may foreclose on your property when you violate certain terms of the agreement you made to borrow money to purchase your home. Typically, a foreclosure occurs when the borrower/homeowner fails to pay their mortgage payments. A bank or lender cannot just foreclose on a property.

Can Chapter 7 Stop Foreclosure?

Filing for Chapter 7 bankruptcy cannot permanently stop a foreclosure lawsuit. However, filing for Chapter 7 Bankruptcy in New York and other states can only delay foreclosure proceedings. When you file either Chapter 7 or 13, the court issues an “automatic stay”. An automatic stay forces creditors to cease their collection attempts immediately.

Can Chapter 13 Stop Foreclosure?

Yes, filing for Chapter 13 can stop a foreclosure action. A Chapter 13 bankruptcy in New York can allow you to create a repayment plan for any past due mortgage payments. To save your home, you must at least be able to afford your current mortgage payments while making the payments toward the unpaid late payments.

Can I Eliminate a 2 nd Mortgage in a Chapter 13 Bankruptcy?

In some scenarios, Chapter 13 bankruptcy can eliminate your second mortgage. If your home dropped in value, you may not have enough equity in your home for the second mortgage to have a secured lien.

Does a Bankruptcy Filing Always Automatically Stop a Foreclosure?

A Chapter 7 or 13 may not always delay a foreclosure proceeding. There are limitations on your ability to obtain an automatic stay imposed by the Bankruptcy Abuse Prevention and Consumer Protection Act.