The Homeowner’s Response

Upon being served with the summons and complaint, regarding notice of the foreclosure lawsuit, in the event you wish to keep your home and contest the foreclosure lawsuit, you need to file a verified answer. This is a response to the summons and complaint, and it will outline any defenses you have to the lawsuit. Be advised if you do not file an answer or you simply fail to respond the court will rule in the case that you have defaulted and the lawsuit will go faster and you’ll lose your home more quickly.

Foreclosure Settlement Conference

Usually within 60 days after your lender initiates the foreclosure lawsuit the Supreme Court in the county where the house is located will schedule a legally mandated foreclosure settlement conference. The purpose of this conference is to see if there’s a way to resolve the foreclosure lawsuit without the homeowners being forced from their home. At the foreclosure settlement conference, issues such as mortgage modifications, forbearance agreements, short sales and other issues will be discussed.

The Discovery Phase

If you put submit a written answer in the foreclosure lawsuit and you contest it, a period begins called the discovery phase of lawsuit. During this time, both you and your lender can request pertinent information and documents from the other side to prepare your respective arguments during motion practice or trial.

Motion For Summary Judgment

In most cases, the financial institution will file a motion for summary judgment. This is a motion by the bank’s lawyers, which asks the court to issue a judgment of foreclosure based solely on the evidence presented in writing. They will claim a trial is not necessary because the case is so one sided. For a homeowner to be successful in defeating the motion for summary judgment, the homeowner simply needs to show there is some issue that should be dealt with at trial. Any issue which is not 100% clearly in the bank’s favor will be the basis for the for the judge to deny the bank’s application for summary judgment motion.

Judgment of Foreclosure and Sale

If the judge rules on the summary judgment motion in favor of the bank, the Court will issue a final judgment of foreclosure and sale and an order to auction off your home. If there is an auction order given, a referee will be appointed, who will sell your home on the Supreme Court steps or in a courtroom in the Supreme Court on rainy days.

Can I Stop A Foreclosure From Moving Forward?

Yes! There are numerous defenses, affirmative defenses, counterclaims and other legal actions which can be taken to stop foreclosures from moving forward and tie up the case in court from three to seven years. The banks have experienced law firms representing them. The best way to you protect your investment in your home and your ability to continue to live in your home with your family is to hire an experienced foreclosure attorney.

The law office of Schlissel DeCorpo have been defending homeowners regarding mortgage issues for more than three decades. They can be reached at 516-561-6645, 718-350-2802, 631-319-8262 and 914-998-0080 or emailed at Elliot@sdnylaw.com.

Foreclosure is the initiation of a lawsuit for the rights to ownership of the property. It seeks to remove from the owners from living in the property and having the property sold at auction to satisfy an unpaid mortgage on the property. The foreclosure process can be initiated by the financial institution’s attorneys as they have a vested interest home which has been used as collateral for the loans.

Start Of The Foreclosure Process

The foreclosure process begins after the homeowner’s default, which technically occurs when they have missed mortgage payments on their home mortgage loan. The number of payments a homeowner can miss before a default notice is sent depends on the financial institution and its policies with regard to defaulted loans. Generally speaking, if you are three months behind on your mortgage payments, your house can be placed into foreclosure.

Missing a Payment – What Should You Do?

If you miss one payment your mortgage company will generally allow you a grace period of up to 15 days during which time you can pay that amount due and avoid late charges. If you do not remit your payment by the end of the grace period, your lender may try to contact you and remind you you’ve missed your payment and advise you that you now owe late fees in addition to your payment. If you get one of those late payment letters it is suggested you contact your financial institution and make arrangements to catch up on your mortgage payment.

What If You Can’t Make Your Mortgage Payments?

If you miss one or more mortgage payments and you do not have the financial capability of catching up on your mortgage payments, you can take action to avoid going into foreclosure or into a pre-foreclosure situation. There are plans such as forbearance agreements, mortgage modifications and other programs which financial institutions have to assist homeowners who have incurred their financial difficulties.

The Start of the Foreclosure Process In New York

Here’s how the foreclosure process in New York works. The financial institution which holds the mortgage on the home hires a law firm. The law firm drafts the summons and complaint. The summons and complaint is filed in the county clerk’s office of the Supreme Court in the county where the property lies. The lender, after filing the summons and complaint, also files a document called a “Lis Pendens”. This is a public notice legal action has been taken regarding your home and this puts everyone on notice that there is a problem with the title to your home and you no longer have good title to the house. Thereafter the lawyers for the financial institution, higher a process server to go to your home and serve you with a copy of the summons and complaint in the foreclosure lawsuit.

The law office of Schlissel DeCorpo have been defending homeowners regarding mortgage issues for more than three decades. They can be reached at 516-561-6645, 718-350-2802, 631-319-8262 and 914-998-0080 or emailed at Elliot@sdnylaw.com.