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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.
- Shopping for Insurance.
- Managing and Mitigating Losses

Residential Foreclosure Actions Consumer Bill of Rights

This Residential Foreclosure Actions Consumer Bill of Rights provides assistance to property owners dealing with foreclosure in New York. A foreclosure is a claim, and property owners need to seek assistance from a lawyer or housing counselor in checking out potential legal defenses to the fit. Homeowners must also understand their basic rights and obligations highlighted listed below.

Throughout the Foreclosure Process

You deserve to remain in your home and the task to maintain your residential or commercial property unless and until a court orders you to leave. If you abandon 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 result, stay in your home and carefully evaluation and respond to documents you receive from the plaintiff or the court in your foreclosure case. A failure to respond or appear in court when needed to do so might make it much easier for the complainant to show that your residential or commercial property is vacant and deserted, which might put you at danger of a sped up foreclosure.

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

You have a right to be devoid of harassment or foreclosure frauds. Strongly consider speaking with an attorney or housing counselor, if offered, before signing any documents. 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 avoid foreclosure if you repay your loan in full at any time prior to the sale of your home, or if you work out a settlement with the complainant.

Before a Foreclosure Action Begins in Court

You have a right to be notified a minimum of 90 days before a foreclosure suit is filed notifying you that you are in default and at risk of foreclosure. You deserve to explore "loss mitigation" options that may enable you to keep your home and prevent lawsuits. The bank or mortgage servicer is needed to help you comprehend your loss mitigation alternatives. If you have sent a completed loss mitigation application, your bank or mortgage servicer must complete its review of your application before continuing with the foreclosure suit.

RPAPL § 1303 has been amended to need plaintiffs in foreclosure actions to offer a more specific and handy notice to debtors concerning their rights and obligations throughout the foreclosure process. Specifically, the notice needs to show that house owners have the right to remain in their homes till a foreclosure sale occurs and the responsibility to preserve their residential or commercial property and pay relevant taxes until such time. This section is planned to help avoid residential or commercial properties from becoming uninhabited in the first place. Read the particular language required by RPAPL § 1303.

RPAPL § 1304 needs mortgage lenders to give borrowers a minimum of ninety days' notification before commencing a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") must consist of the following language: "Since ___, your mortgage is ___ days in default ... You can treat this default by making the payment of ___ dollars by ___." Unfortunately, debtors frequently translated this provision to mean that as long as the customer offered the specified quantity by the date defined, the loan would be reinstated. Quite frequently, the "remedy 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 borrower waits a full 90 days to supply the amount 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 submits the amount set forth in the PFN would stay in default due to intervening accruals, despite his or her good-faith efforts to resolve the default specified in the PFN.

The new law addresses this issue by amending the 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 borrower's continuous rights and responsibilities throughout the foreclosure process. Read the brand-new pre-foreclosure notification language.

Once a Foreclosure Action Begins

You deserve to get a copy of the legal papers in the foreclosure lawsuit when it starts. This is called "service" of the Summons and Complaint. You must react to the Summons and Complaint with an "Answer" within 20 days after you have been personally served, and within one month if served on you by other methods. The Answer is your chance to state your defenses.

You should speak with an attorney or housing therapist for aid in this process.

You have a responsibility to appear at all arranged court looks. If you fail to appear, you risk losing essential rights, which might cause the loss of the case and your home.

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

At a Mandatory Settlement Conference

You have a right to a description of the nature of the foreclosure action versus you.

Both celebrations have a responsibility to bring all necessary documents to the settlement conference. For a basic list of needed documents, go to the Mandatory Settlement Conference info page.

Both parties should negotiate in "excellent faith", which indicates truthfully and relatively. If you stop working to do so, you might lose the chance to pursue a court-supervised settlement. If the bank or mortgage servicer stops working to do so, the court may impose similarly substantial penalties. Negotiating in excellent faith does not need either party to settle.

If you previously stopped working to send an Answer, you will be provided an additional 30 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 remains in conflict, should be raised.

You might be accountable for extra taxes if you reach a settlement that consists of debt forgiveness. Consult from a tax professional about any resulting tax effects.

After Judgment of Foreclosure and Sale

Upon a judgment of foreclosure and sale, the brand-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 file an application with the court for the surplus funds, based on particular due dates. It is essential to look for aid from a legal provider if you believe you are owed a surplus.

If the home is cost less than what you owe, the loan provider may file an application for a judgment against you for the distinction, called a shortage judgment. You may deserve to contest the amount of any deficiency judgment, consisting of interest and penalties.

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

Housing counselors that deal with foreclosure-related concerns can offer you guidance on your alternatives and resources at little or no charge. They might also be able to work out with your lending institution totally free and assist you discover free legal services in your area.

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 charge. Call the HOPP hotline at (855) 466-3456 or go to homeownerhelpny.com.
- You can discover a list of authorized non-profit housing therapists by county here, on the DFS site.
- 24-Hour assistance is offered toll-free on the HOPE NOW hotline at 888-995-HOPE (888-995-4673). HOPE NOW is an alliance of HUD authorized counseling agents, servicers, and investors that provide free support.
- If you live in New york city City, you can likewise call 311.

If you are in a foreclosure lawsuit, you must seek advice from a lawyer.

Seek Legal Assistance

Contact a lawyer and review your mortgage files. Make certain your loan is not in offense of any laws. If you do not have a lawyer, the New York State Bar Association might have the ability to refer you to a suitable lawyer for your scenario.

If you can not manage a private lawyer, resources totally free or low-cost legal help consist of:

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