Foreclosure
Buying a home can be one of the happiest moments in life, and losing your home can be one of the most frightening. If you have financial problems because of the crime, it may be hard for you to pay your mortgage. If this happens, you could be at risk for foreclosure. That means you could lose your home.
This section has information about what to do if you are worried about:
- Falling behind on your mortgage payments
- Losing your home
What is foreclosure?
Foreclosure is a when a bank or mortgage lender files a lawsuit to force the sale of a property. The bank does this to get back money owed when someone falls behind on payments.
Will I be forced to leave my home if I can’t pay the mortgage?
Even if you miss a couple of mortgage payments, you will not have to leave your home right away. A foreclosure case takes a while in the courts. That gives you time to work with your lender and try to stop foreclosure.
How long does a foreclosure case take?
The length of foreclosure depends on where you live. Foreclosure usually takes about:
- 1-1/2 years in upstate New York
- 3-1/2 years in downstate.
But sometimes it can happen in less than 1 year, so it is important to ask for help as soon as you can.
Do I have rights?
In NYS, homeowners facing foreclosure are protected by the Consumer Bill of Rights. You have a right to:
- Stay in your home until a court orders you to leave. You must keep your property in good shape.
- Have a lawyer. You may qualify for free or low cost housing counseling.
- Be free from harassment or foreclosure scams.
- Stop your home from being foreclosed if you repay your loan in full or agree to a settlement with the lender before your home is sold.
- Get notice at least 90 days before a foreclosure suit is filed against you.
- Look into “loss mitigation” options to keep your home and avoid a lawsuit. If you file a loss mitigation application, the mortgage lender cannot continue with the foreclosure until they review your application.
- Participate in all court hearings and proceedings about your case, including a settlement conference required by New York State law.
Homeowners are also protected by the following procedures:
90 Day Pre-Foreclosure Filing Notice: You have the right to get a notice from the lender at least 90 days before the foreclosure starts. The notice must :
- Say how much you have to pay to stop foreclosure
- List at least 5 non-profit housing counseling agencies near you
Answer to Complaint: If a lawsuit is filed, you can get legal advice. If you file an answer to the foreclosure complaint you will get notices and updates about your case.
Settlement Conference: The court must schedule a conference within 60 days after the lender files a lawsuit. The conference lets you:
- Negotiate with the lender
- Work out another solution
The lender must negotiate in “good faith.” This means they must act honestly and fairly.
I’m having trouble paying my mortgage. What can I do?
If you are struggling to make payment or have fallen behind, you may feel embarrassed or scared. But there are things you can do to save your home and protect your rights:
- Call your bank as soon as possible. The sooner you call, the more options you have.
- Use Empire Justice Center’s Foreclosure Guide. Follow the steps to protect yourself from foreclosure.
- Call the NYS Office of the Attorney General’s Homeowner Protection Program (HOPP) hotline at 855-466-3456. HOPP is a statewide network of over 90 housing counseling and legal services organizations. They help homeowners in danger of foreclosure in every county in New York. All services are free.
- Contact a not-for-profit, approved Housing Counseling agency. These agencies can give you free or low cost advice and resources. They may be able to talk to your lender for you.
- Watch out for scammers.
- Visit HomeOwnerHelpNY for free help and accurate information.
For more information and resources, please visit the NYS Website.