Long Island Foreclosure
If you get behind on your bills, there are a number of potential consequences depending on the type of property and how late you are. The consequence of failing to make timely mortgage payments may be foreclosure. If you miss 2-3 payments, your mortgage loan will fall into default. Defaulting on your mortgage is the first step of the foreclosure process. At the end of the foreclosure process you will lose your property. Ownership of the property will revert back to the bank or whatever entity held the mortgage. However, before your financial situation becomes so dire that your home falls into foreclosure there are several debt relief options that you could take advantage of to help you improve your financial situation so that you do not lose your home. For example, you could get a debt consolidation loan, you could negotiate debt settlement agreements with your creditors, or you could file for chapter 7 bankruptcy or chapter 13 bankruptcy. If you have fallen behind on your mortgage payments and your property is in foreclosure, it is critical that you immediately contact an experienced Long Island Foreclosure Lawyer who will help you fight the foreclosure proceedings and who will also explain your options for managing your debt.What is the foreclosure procedure?
The party that initiates foreclosure proceedings is referred to a the foreclosing party. It is typically a bank, but could be any entity that holds the mortgage on your property and in effect "owns" your property. In New York under N.Y. Real Prop. Acts Law section 1301 before a foreclosing party can foreclose on your property it must first file a lawsuit against you. The bank must give you at least 90 days notice before filing the foreclosure complaint. Once you are served with the foreclosure complaint, you will have 20-30 days to respond to the complaint by filing an answer. Failure to respond to the notice of foreclosure will likely result in the judge issuing a default judgment against you. If you do file an answer disputing the bank's case but ultimately lose in court, the court will issue foreclosure judgment.
At any time prior to the final foreclosure judgment you will have the option of restating your mortgage. Restatement of your mortgage loan involves making up all of the missed payments, plus interest and fees. If you restate your mortgage loan, your home will no longer be at risk for foreclosure and a foreclosure judgment will not be issued against you.What happens if a foreclosure judgment is issued?
If a foreclosure judgment is issued against you, the bank will sell your property in an effort to recoup the amount of money that is still outstanding on the mortgage loan. However, it is possible that the sale price will be less than the amount that you owe the bank. The difference is referred to as a deficiency. If there is a deficiency under N.Y. Real Prop. Act Law section 1371 the bank may obtain a deficiency judgment against you. The deficiency will be limited to the fair market value of the property as determined by the court.
If you are at risk of losing your home to foreclosure, it is imperative that you immediately contact an experienced Long Island Foreclosure Lawyer who will work hard to fight the foreclosure so that you can keep your home and help you explore options to help you with your debt problems. The staff at Stephen Bilkis & Associates, PLLC has extensive experience helping clients avoid foreclosure, avoid garnishments, eliminate debt, respond to creditors' claims, file for chapter 7 and chapter 13 bankruptcy, and deal with other issues related to debt relief. Contact us at 800.696.9529 to schedule a free, no obligation consultation regarding your debt issues.