Foreclosures are initiated when homeowners miss their mortgage payments. If a homeowner is between 16 and 30 days behind on their mortgage, a late charge is assessed against them. In these situations the financial institution, or its loan servicing company, will usually notify the homeowner with regard to the late payment issue.
3 Months Behind on Mortgage Payments
When a homeowner is 3 months behind on mortgage payments the financial institution, if they decide to move forward with a foreclosure, must send the homeowner a foreclosure notice a minimum of 90 days before initiating the foreclosure lawsuit. The purpose of the 90 day window is to give the homeowner an opportunity to work out an alternative resolution of the mortgage issue with the financial institution. The 90 day notice must provide how much the homeowners are behind and what they would need to pay to bring the mortgage current. In addition, the 90 day notice must provide the homeowner with names and telephone numbers of a minimum of 5 government approved not-for-profit housing counselling agencies serving the area where the homeowner resides.
90 Days Behind on Mortgage Payments
If the homeowner falls 90 days or more behind on a mortgage, the financial institution or its servicing agency may bring legal action to foreclose on the home. It involves the hiring of an attorney on behalf of the financial institution to file a Summons and Complaint against the homeowner and file a “Lis Pendis” which has a negative impact to the title of the homeowner’s home.
Once the Summons and Complaint has been Served
After the Summons and Complaint has been served on the homeowner and the lender files the proof of service with the court, a Foreclosure Settlement Conference is usually scheduled by the financial institution’s attorneys. During the Foreclosure Settlement Conference a judge or referee meets with the homeowner, the homeowner’s attorney, and the attorneys for the financial institution. The referee or judge looks into whether there is an alternative resolution of the case instead of the house being sold in the foreclosure. The attorney for the homeowner or the homeowner must bring to this Settlement Conference proof of income, a minimum of 2 recent pay stubs and recent tax returns.
Foreclosure Mediation
The Foreclosure Settlement Conference in the court does not relieve the homeowner of the responsibility of providing a written Answer to the Summons and Complaint. The failure of the homeowner to respond to the Summons and Complaint can result in a default which will allow the foreclosure to go through the courts more quickly.
The law firm of Schlissel DeCorpo LLP has been helping families deal with mortgage and foreclosure problems for more than 30 years. We can be reached at 718-350-2802, 516-561-6645 or 631-319-8262 or by e-mail at info@sdnylaw.com.
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A foreclosure is the name of a lawsuit that the financial institution holding a mortgage files against the homeowner. The filing takes place in the County Clerk=s Office of the County in which the home is located. The lawsuit moves forward in the Supreme Court in the County where the property is located.
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