Common Foreclosure Terms Defined

Foreclosure

Foreclosure refers to a situation where the owner of a home is behind on his or her mortgage payments and/or is unable to make the monthly payments of the interest and principal currently due on their mortgage. The foreclosure proceeding brought by the lender is maintained for the purpose of forcing the sale of the real property to recover the principle and interest due, plus penalties and the cost of bringing the foreclosure lawsuit. When the payments on the mortgage are more than 90 days old, the lender has to serve a Notice of Default on the borrowers stating the amount of money that is due and owing and how much that would have to be paid to cure the default on making the mortgage payments. If, during the 90 day period, all of the unpaid mortgage payments plus penalties and attorneys fees are not paid the lender can retain counsel to serve a foreclosure summons and complaint on the homeowners..

Start of Lawsuit

The service of the Summons and Complaint on the homeowner starts the foreclosure lawsuit moving forward. The lender seeks to obtain a court order bringing the lawsuit to cause the homeowners home to be sold at an auction date either on the courthouse steps of the county in which the home is located or in a courtroom. At the time of the auction sale, if there are no bidders on the home, the bank will bid in the amount due and owing to it on the mortgage and obtain a referees deed which gives them title to the house. Thereafter the bank can initiate a landlord tenant proceeding to have the homeowners evicted from their home.

Subsequent Sale Of A Home

After the bank takes title to the home, they usually hire a real estate brokerage company to show the home to prospective purchasers. Sometimes banks will allow the homeowners to remain in the home for a period of time before they are evicted. The banks will also make arrangements to allow the homeowners to stay in their home under certain circumstances but will request the homeowners allow the home to be shown to prospective purchasers.

Deficiency Judgment

If the home is sold, for less than the amount due and owing to the bank, the bank can proceed to recover the short-fall in the amount owed to them. The process of obtaining the short-fall, the amount owed to them, involves their bringing a lawsuit to obtain a deficiency judgment against the homeowners. The deficiency judgment the bank can pursue is equal to the amount due and owing the bank by the homeowners less the proceeds received at the foreclosure sale.

How Do You Stop Foreclosure?

The best way to stop foreclosure lawsuits in their tracks is to hire an experienced dedicated foreclosure defense law firm. Our law office has help hundreds of homeowners in Nassau and Suffolk County as well as the five boroughs of the City of New York to fight foreclosure lawsuits and keep their homes! For more than 45 years our law firm has been recognized as one of the premier foreclosure defense law firms in the metropolitan New York area. Call us now for a free consultation at 516-561-6645 or 718-350-2802. Our phones are monitored 24/7.

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