If you are behind on your monthly mortgage loan payments, you may be at risk of losing your home through foreclosure. Foreclosures occur when a lender (typically a bank) sells a property at a public foreclosure auction. In most cases, foreclosure proceedings begin when a homeowner is at least three consecutive months behind on their mortgage payments. Although it takes some time for a lender to resort to foreclosure, a lender will eventually enforce the rights and remedies set forth in the mortgage, stating that the lender may repossess the house if a borrower fails to make timely payments.
There are several common misconceptions many homeowners at risk of foreclosure believe that are untrue. Homeowners often feel defeated and believe there is nothing for them to do to remedy the situation and remain in their homes. It is in the best interest of the homeowner to immediately contact an experienced foreclosure attorney. The attorneys at Mava Law are well versed in the foreclosure process and can assist you to stay in your home, rather than face the daunting foreclosure on your own.
The Foreclosure Process
The foreclosure proceeding is a long and tedious process. For that reason, hiring a foreclosure lawyer to aid you is a standard procedure. New York State law indicates that there are certain procedures the lender must strictly follow in a foreclosure lawsuit.
If you are behind on a mortgage payment, you will receive a notice reminding you to make payment arrangements. If a lender decides to pursue foreclosure, the lender must send the borrower a 90 Day Pre-Foreclosure Notice prior to officially filing a foreclosure summons and complaint. In addition, the lender must file an Affidavit of Service, which states when and how the borrower was served. The lender also files an Attorney Affirmation and a Request for Judicial Intervention with the court to schedule a mandatory settlement conference.
The lender will file a summons and complaint to begin the foreclosure lawsuit, which is the most important part of the foreclosure process. A homeowner’s response to the summons and complaint is crucial. If you are served with a foreclosure summons and complaint wherein a lender seeks to foreclose your home, you have 20-30 days to respond. If the homeowner does not sufficiently respond to the foreclosure summons and complaint, the homeowner will be placed in default and are in danger of having your home foreclosed. It is imperative to file an Answer to preserve your rights as a homeowner in the foreclosure suit.
After the initial filings, settlement conferences are scheduled to determine whether the lender and borrower can come to an agreement. If a resolution is reached, between the parties, the lender will file a discontinuance of the action ending the foreclosure suit. At the settlement conference, the lender may grant the borrower (i) a mortgage loan modification, (ii) the opportunity for loan re-instatement, or (iii) a forbearance plan in lieu of foreclosure. If a resolution is not reached the foreclosure process continues until a Judgment of Foreclosure and Sale is entered, allowing the lender to publish a notice of sale and schedule the auction date.
Mava Law assists homeowners analyze the foreclosure summons and complaint, the mortgage loan agreement, and other relevant documents to establish a and achieve the best outcome for the homeowner.
How Mava Law Can Help
- Analyze pre-foreclosure notice and foreclosure summons and complaint
- Review mortgage and other ancillary documents
- Prevent foreclosure sale of the property
- Consider ways to avoid foreclosure, such as mortgage loan modification or bankruptcy
- Use best efforts to keep you in your home