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.
Searching for Insurance.
Managing and Mitigating Losses

Residential Foreclosure Actions Consumer Bill of Rights

This Residential Foreclosure Actions Consumer Bill of Rights provides assistance to homeowners dealing with foreclosure in New York. A foreclosure is a suit, and property owners must seek assistance from an attorney or housing counselor in exploring potential legal defenses to the fit. Homeowners need to also know their general rights and responsibilities highlighted listed below.

Throughout the Foreclosure Process

You deserve to remain in your home and the duty to keep your residential or commercial property unless and till a court orders you to vacate. 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 avoid this outcome, stay in your home and thoroughly review and respond to files you receive from the complainant or the court in your foreclosure case. A failure to react or appear in court when needed to do so could make it easier for the plaintiff to reveal that your residential or commercial property is vacant and abandoned, which might put you at threat of an accelerated foreclosure.

You have a right to be represented by an attorney and may be eligible free of charge legal or housing therapy services.

You have a right to be devoid of harassment or foreclosure frauds. Strongly think about seeking advice from a lawyer or housing therapist, if offered, 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 prevent foreclosure if you repay your loan completely at any time previous to the sale of your home, or if you work out a settlement with the plaintiff.

Before a Foreclosure Action Begins in Court
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You have a right to be informed a minimum of 90 days before a foreclosure match is submitted informing you that you remain in default and at danger of foreclosure. You can check out "loss mitigation" options that might allow you to keep your home and prevent lawsuits. The bank or mortgage servicer is needed to help you understand your loss mitigation alternatives. If you have sent a finished loss mitigation application, your bank or mortgage servicer need to finish its review of your application before continuing with the foreclosure fit.

RPAPL § 1303 has actually been modified to require complainants in foreclosure actions to offer a more specific and handy notification to debtors regarding their rights and commitments throughout the foreclosure process. Specifically, the notification must show that house owners can remain in their homes until a foreclosure sale occurs and the obligation to keep their residential or commercial property and pay suitable taxes up until such time. This section is meant to assist prevent residential or commercial properties from ending up being vacant in the first place. Read the specific language required by RPAPL § 1303.

RPAPL § 1304 needs mortgage creditors to give debtors at least ninety days' notice before beginning a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") need to consist of the following language: "Since ___, your mortgage is ___ days in default ... You can cure this default by making the payment of ___ dollars by ___." Unfortunately, debtors typically interpreted this provision to imply that as long as the customer offered the mentioned quantity by the date specified, the loan would be reinstated. Frequently, the "cure date" specified 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 debtor waits a full 90 days to supply the quantity specified, any missed out on payments and associated interest and fees from the stepping in months would be contributed to the shortage. In such a case, the borrower who sends the amount set forth in the PFN would remain in default due to intervening accruals, in spite of his or her good-faith efforts to deal with the default defined in the PFN.

The new law addresses this problem by amending the first line of the notice to read "Since ____ your mortgage is ____ days and ___ dollars in default." Similarly, it includes language to RPAPL § 1304 which highlights the debtor's ongoing rights and obligations throughout the foreclosure procedure. Read the brand-new pre-foreclosure notification language.

Once a Foreclosure Action Begins

You can receive a copy of the legal documents in the foreclosure suit when it begins. This is understood as "service" of the Summons and Complaint. You should react to the Summons and Complaint with an "Answer" within 20 days after you have actually been personally served, and within one month if served on you by other methods. The Answer is your chance to mention your defenses.

You should seek advice from a lawyer or for aid in this process.

You have an obligation to appear at all scheduled court looks. If you fail to appear, you run the risk of losing essential rights, which might cause the loss of the case and your home.

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

At a Necessary 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 needed documents to the settlement conference. For a basic list of needed files, visit the Mandatory Settlement Conference information page.

Both parties must negotiate in "excellent faith", which suggests honestly and fairly. If you stop working to do so, you may lose the chance to pursue a court-supervised settlement. If the bank or mortgage servicer fails to do so, the court may enforce similarly significant penalties. Negotiating in good faith does not require either party to settle.

If you previously failed to submit an Answer, you will be provided 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 designation on your residential or commercial property, which cautions people that title to your residential or commercial property is in dispute, need to be raised.

You might be accountable for extra taxes if you reach a settlement that includes debt forgiveness. Seek recommendations 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 submit an application with the court for the surplus funds, based on certain due dates. It is essential to look for aid from a legal service supplier if you believe you are owed a surplus.

If the home is cost less than what you owe, the lender might file an application for a judgment against you for the difference, called a shortage judgment. You may can contest the amount of any shortage judgment, including interest and penalties.

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

Housing therapists that handle foreclosure-related problems can offer you suggestions on your options and resources at little or no charge. They might also have the ability to work out with your lender for complimentary and assist you discover 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 therapists and legal services at no cost. Call the HOPP hotline at (855) 466-3456 or check out homeownerhelpny.com.
You can find a list of authorized non-profit housing therapists by county here, on the DFS website.
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 approved counseling representatives, servicers, and financiers that provide totally free help.
If you reside in New york city City, you can also call 311.

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

Seek Legal Assistance

Contact an attorney and evaluate your mortgage documents. Make sure your loan is not in violation of any laws. If you do not have an attorney, the New york city State Bar Association may have the ability to refer you to a suitable attorney for your situation.
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If you can not manage a private attorney, resources free of charge or affordable legal assistance include:

- New York's Homeowner Protection Program (HOPP), which gets in touch with housing therapists and legal services at no charge. 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 of totally free legal provider in New York.