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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

- An Occupant'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.
- Looking for Insurance.
- Managing and Mitigating Losses

Residential Foreclosure Actions Consumer Bill of Rights

This Residential Foreclosure Actions Consumer Bill of Rights supplies guidance to property owners dealing with foreclosure in New York. A foreclosure is a lawsuit, and homeowners should seek assistance from an attorney or housing therapist in checking out prospective legal defenses to the fit. Homeowners must likewise know their general rights and responsibilities highlighted below.

Throughout the Foreclosure Process

You have the right to remain in your home and the task to maintain your residential or commercial property unless and up until a court orders you to vacate. If you abandon your home, the plaintiff (bank or mortgage servicer) may be able to foreclose on your residential or commercial property through an expedited process in court. To avoid this result, remain in your home and carefully evaluation and respond to documents you get from the plaintiff or the court in your foreclosure case. A failure to react or appear in court when needed to do so might make it easier for the complainant to reveal that your residential or commercial property is uninhabited and deserted, which could put you at threat of an expedited foreclosure.

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

You have a right to be complimentary from harassment or foreclosure scams. Strongly consider talking to 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 prevent foreclosure if you repay your loan in complete 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 alerted at least 90 days before a foreclosure fit is filed informing you that you are in default and at threat of foreclosure. You can explore "loss mitigation" alternatives that may enable you to keep your home and avoid lawsuits. The bank or mortgage servicer is required to assist you understand your loss mitigation alternatives. If you have actually submitted a finished loss mitigation application, your bank or mortgage servicer must finish its review of your application before continuing with the foreclosure fit.

RPAPL § 1303 has been amended to require complainants in foreclosure actions to offer a more particular and useful notification to borrowers concerning their rights and responsibilities during the foreclosure procedure. Specifically, the notice needs to indicate that homeowners can remain in their homes up until a foreclosure sale occurs and the obligation to keep their residential or commercial property and pay appropriate taxes until such time. This section is meant to help prevent residential or commercial properties from ending up being uninhabited in the very first place. Read the specific language needed by RPAPL § 1303.

RPAPL § 1304 needs mortgage financial institutions to provide debtors a minimum of ninety days' notification before beginning a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") should 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, borrowers typically analyzed this arrangement to mean that as long as the customer provided the mentioned amount by the date defined, the loan would be renewed. Quite typically, the "cure date" specified in the PFN is the earliest date on which the financial institution can start a foreclosure action, which is 90 days after sending the PFN. When the debtor waits a complete 90 days to provide the amount defined, any missed payments and associated interest and fees from the stepping in months would be contributed to the deficiency. In such a case, the customer who sends the quantity set forth in the PFN would remain in default due to stepping in accruals, despite his or her good-faith efforts to attend to the default specified in the PFN.

The brand-new law addresses this concern by changing the very 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 debtor's ongoing rights and obligations 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 suit when it begins. This is understood as "service" of the Summons and Complaint. You need to respond 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 state your defenses.

You should talk to a lawyer or housing counselor for assistance in this procedure.

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

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

At a Necessary Settlement Conference

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

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

Both parties should negotiate in "good faith", which implies honestly and relatively. If you stop working to do so, you might lose the opportunity to pursue a court-supervised settlement. If the bank or mortgage servicer fails to do so, the court may impose similarly significant charges. Negotiating in excellent faith does not require either celebration to settle.

If you formerly failed to send an Answer, you will be offered an extra 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 warns individuals that title to your residential or commercial property is in conflict, must be raised.

You may be accountable for extra taxes if you reach a settlement that includes debt forgiveness. Consult from a tax professional about any resulting tax consequences.

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 specific deadlines. It is very important to look for assistance from a legal provider if you think you are owed a surplus.

If the home is cost less than what you owe, the lender might submit an application for a judgment against you for the difference, called a deficiency judgment. You may deserve to contest the quantity of any deficiency judgment, consisting of interest and charges.

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

Housing counselors that deal with foreclosure-related concerns can give you suggestions on your options and resources at little or no charge. They may also have the ability to work out with your lending institution for complimentary 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 connects with housing counselors and legal services at no charge. Call the HOPP hotline at (855) 466-3456 or go to homeownerhelpny.com.
- You can find a list of authorized non-profit housing counselors by county here, on the DFS website.
- 24-Hour support is available toll-free on the HOPE NOW hotline at 888-995-HOPE (888-995-4673). HOPE NOW is an alliance of HUD authorized counseling representatives, servicers, and investors that provide totally free help.
- If you reside in New york city City, you can also call 311.

If you are in a foreclosure court case, you must consult 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 an attorney, the New York State Bar Association may have the ability to refer you to a proper attorney for your circumstance.

If you can not pay for a personal attorney, resources totally free or affordable legal support consist of:

- New york city's Homeowner Protection Program (HOPP), which gets in touch with housing counselors and legal services at no expense. 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 website.
LawHelp.org, an online directory site of complimentary legal service providers in New York.