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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 offers assistance to property owners dealing with foreclosure in New york city. A foreclosure is a lawsuit, and house owners should look for help from an attorney or housing therapist in exploring potential legal defenses to the match. Homeowners should likewise understand their basic rights and obligations highlighted below.

Throughout the Foreclosure Process

You deserve to stay in your home and the duty to keep your residential or commercial property unless and until a court orders you to abandon. If you desert 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 outcome, remain in your home and thoroughly review and react to files you get from the complainant or the court in your foreclosure case. A failure to react or appear in court when required to do so might make it easier for the complainant to reveal that your residential or commercial property is vacant and abandoned, which might put you at danger of an expedited foreclosure.

You have a right to be represented by a lawyer and might be eligible for totally free legal or housing counseling services.

You have a right to be free from harassment or foreclosure scams. Strongly think about consulting with a lawyer or housing therapist, if readily available, 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 prevent foreclosure if you repay your loan in full at any time previous 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 alerted a minimum of 90 days before a foreclosure match is submitted informing you that you are in default and at threat of foreclosure. You deserve to explore "loss mitigation" options that may enable you to keep your home and avoid litigation. The bank or mortgage servicer is required to help you comprehend your loss mitigation options. If you have sent a finished loss mitigation application, your bank or mortgage servicer should complete its evaluation of your application before continuing with the foreclosure match.

RPAPL § 1303 has actually been changed to require plaintiffs in foreclosure actions to offer a more specific and helpful notice to debtors regarding their rights and responsibilities throughout the foreclosure process. Specifically, the notification should indicate that house owners deserve to stay in their homes till a foreclosure sale occurs and the commitment to preserve their residential or commercial property and pay suitable taxes up until such time. This area is meant to help prevent residential or commercial properties from ending up being uninhabited in the very first place. Read the particular language needed by RPAPL § 1303.

RPAPL § 1304 needs mortgage financial institutions to provide debtors a minimum of ninety days' notice before commencing a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") should consist of the following language: "As of ___, your mortgage is ___ days in default ... You can cure this default by making the payment of ___ dollars by ___." Unfortunately, debtors typically analyzed this arrangement to imply that as long as the debtor supplied the mentioned quantity by the date defined, the loan would be reinstated. Quite frequently, the "treatment date" specified in the PFN is the earliest date on which the lender can start a foreclosure action, which is 90 days after sending the PFN. When the borrower waits a complete 90 days to provide the quantity defined, any missed payments and associated interest and costs from the intervening months would be included to the shortage. In such a case, the debtor who submits the quantity set forth in the PFN would remain in default due to stepping in accruals, regardless of his/her good-faith efforts to deal with the default specified in the PFN.

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

Once a Foreclosure Action Begins

You have the right to receive a copy of the legal documents in the foreclosure claim when it starts. This is referred to as "service" of the Summons and Complaint. You should respond to the Summons and Complaint with an "Answer" within 20 days after you have actually been personally served, and within 30 days if served on you by other means. The Answer is your opportunity to state your defenses.

You ought to consult with a lawyer or housing therapist for aid in this procedure.

You have a responsibility to appear at all set up court looks. If you fail to appear, you run the risk of losing important rights, which could cause the loss of the case and your home.

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

At a Compulsory Settlement Conference

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

Both parties have an obligation to bring all required files to the settlement conference. For a general list of required files, go to the Mandatory Settlement Conference details page.

Both celebrations should work out in "excellent faith", which indicates honestly and relatively. If you stop working to do so, you may lose the chance to pursue a court-supervised settlement. If the bank or mortgage servicer stops working to do so, the court might enforce similarly significant charges. Negotiating in good faith does not require either celebration to settle.

If you previously stopped working to submit a Response, you will be offered an extra one month to do so at the settlement conference.

After Settlement Agreement or Fully Executed Loss Mitigation Agreement

Within 90 days of completing a settlement, the lis pendens classification on your residential or commercial property, which alerts individuals that title to your residential or commercial property is in dispute, should be lifted.

You might be responsible for additional taxes if you reach a settlement that consists of financial obligation forgiveness. Consult from a tax professional about any resulting tax repercussions.

After Judgment of Foreclosure and Sale

Upon a judgment of foreclosure and sale, the new owner can look for 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, subject to specific deadlines. It is important to seek help from a legal provider if you think you are owed a surplus.

If the home is offered for less than what you owe, the lending institution may file an application for a judgment against you for the distinction, referred to as a deficiency judgment. You might have the right to contest the quantity 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 provide you suggestions on your options and resources at little or no expense. They may likewise be able to work out with your lending institution free of charge and help you find free legal services in your location.

Housing therapy resources for New Yorkers include:

- New York's Homeowner Protection Program (HOPP), which gets in touch with housing counselors and legal services at no charge. Call the HOPP hotline at (855) 466-3456 or see homeownerhelpny.com.
- You can discover a list of approved 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 offer free assistance.
- If you live in New york city City, you can likewise call 311.

If you are in a foreclosure court case, you should seek advice from a lawyer.

Seek Legal Assistance

Contact an attorney and review your mortgage files. Ensure your loan is not in offense of any laws. If you do not have a lawyer, the New york city State Bar Association might have the ability to refer you to an appropriate attorney for your scenario.

If you can not manage a private lawyer, resources totally free or affordable legal help include:

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