Foreclosure Strategies
May 10 2018
The best way to deal with a foreclosure is to take aggressive legal action when the foreclosure laws... [Read More...]
November 14, 2023 By
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.
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.
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.
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.