Of the many consequences of falling behind on your bill payments such as calls from collection agencies, wage garnishment and bank account levy, foreclosure is one of the most devastating. Foreclose is the legal process during which the entity that holds the mortgage on your house, condo or coop, seizes the property from you for failure to pay the mortgage. However, before your financial situation becomes so desperate that your property home falls into foreclosure there are 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 individual 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 or is at risk of going into foreclosure, it is critical that you immediately contact an experienced Queens 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 process?
The party that initiates foreclosure proceedings is referred to as the foreclosing party. It is typically the bank or mortgage company from which you took out the mortgage when you first purchased the home. It is the person or entity who in effect "owns" your property.
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 foreclosing party 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. If you do not respond to the notice of foreclosure, then the judge may issue the bank a default judgment against you. If you do file an answer disputing the bank's case, the bank may respond by filing a motion for summary judgment. If the court refuses to grant the bank its motion for summary judgment, then your case will proceed to trial. If you lose, then the court will issue foreclosure judgment.
New York law also requires that you meet with the foreclosing party to try to work out a settlement that would avoid foreclosure. You and the foreclosing party will meet at a settlement conference to attempt to try to avoid foreclosure. If you are unable to work out a settlement, the foreclosure case will proceed.
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.What is a deficiency judgment?
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 Queens 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. If you are having problems paying your mortgage, do not wait until you are at risk of foreclosure. The sooner you address your debt problem, the more options you will have. 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.