Despite some states opening up and lifting their individual governor’s quarantine, New York continues to remain on lock down, and has been since March 2020. As a result, businesses have closed, people are out of work, and thus, millions of people have been unable to pay their mortgage and are in danger of facing foreclosure.
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During these times, you may be asking yourself:
- I can’t go to work because of the coronavirus, pay the mortgage, what should I do?; or
- I got a coronavirus or my relatives got infected and this prevents me from working because of that I can not pay my mortgage on time – what should I do?; or
- What to do if during a pandemic my business stopped working and I can’t pay my mortgage?; or
- What new conditions does the Covid-19 dictate?.
Luckily, there are options to avoid foreclosure, and a good New York foreclosure attorney or foreclosure practitioner that practices foreclosure defense can provide the needed foreclosure help, provide advice on payoff assisance, or come up with a foreclosure settlement agreement, so as to best avoid house foreclosure or avoid foreclosure all together.
What is the foreclosure process?
After about three to six months of missed payments, the lender will notify the borrower via a 90-Day Pre-Foreclosure Notice, that they are in danger of losing their home to foreclosure. The lender then accelerates the entire amount of the loan to be due. Collectively, this puts the borrower on notice that they are facing foreclosure.
If the defaulted loan isn’t reinstated by bringing the loan current, a foreclosure lawsuit is filed by the lender against the homeowner. The homeowner will be served with the lawsuit. The homeowner then has an opportunity to file an answer within 20-30 days, depending on the method of service. Mandatory settlement conferences are then held to help arrive at a settlement. The case will then go through discovery and motion practice until the case is dismissed or the property is scheduled for a foreclosure auction.
The foreclosure sale typically occurs on the steps of the county courthouse in which the property is located. The time and location of this sale are designated in the Notice of Sale.
How many missed payments before foreclosure? How many months behind on mortgage before foreclosure?
About three to six months of missed payments.
How do I find out if my house is in foreclosure?
You can visit your county clerk’s office or contact your lender. You can also check public auction listings. These listings are available online and in your county’s recorder’s office, and include both the street address and the homeowner’s name.
If you feel that your home may be in foreclosure, you should contact a New York foreclosure lawyer to help search.
How does covid affect the foreclosure process?
Since the COVID-19 is a worldwide pandemic, particularly in New York City, and is considered an extraordinary circumstance, many banks and financial institutions have instituted special company options to avoid foreclosure or have programs to provide payoff assistance and mortgage repayment plans to avoid foreclosure.
Although there are many foreclosure defense attorneys in NYC, it is best to have a proper mortgage foreclosure lawyer. In addition to providing foreclosure defense, an experienced stop foreclosure attorney or foreclosure attorney can discover what programs you qualify for and can offer foreclosure help to try to avoid house foreclosure.
What does pre foreclosure mean? What is the difference between pre foreclosure and foreclosure? How long does pre foreclosure last? Сan I delay the pre-foreclosure thanks to the coronavirus?
Pre-foreclosure refers to the legal situation a property is in during the early stages of the foreclosure process. Reaching pre-foreclosure status begins when the lender files a lis pendens against the property, which informs the property owner and public that the borrower is in default. The owner is said to be in default if he fails to make payments for at least three months.
The pre-foreclosure period can last anywhere from three to 10 months. A foreclosure lawsuit will start within that period of time.
Accordingly, the property owner can pay off the outstanding debt at this point, the owner can reverse the default status by making up the late payments so the home is no longer in pre-foreclosure, or she can sell the property before it goes into foreclosure.
Luckily, pre-foreclosure may be delayed due to the coronavirus. Many banks may offer pre-foreclosure programs. An experienced foreclosure attorney can identify if you may qualify for a program and which one will work for you.
If I am served with foreclosure papers, now what? How to respond to a foreclosure summons? How to stop foreclosure? How to stop a foreclosure sale? How to prove wrongful foreclosure? How to know foreclosure rescue scams in
their face? Which one of these is the best way to prevent foreclosure?
If the homeowner is able to reinstate the loan and bring it current, that is always the best thing to do.
Otherwise, there are a number of ways to stop a foreclosure, though not all of them will allow you to keep your home. They include:
A. Loan Modification;
B. Forbearance Plan;
C. Deed in Lieu of Foreclosure; and
D. Short Sale or Short Pay-Off.
What is the difference between a short sale and a foreclosure? A short sale happens when a homeowner owes more on the mortgage balance than the market value or sale price of the property at the point the owner wants to sell.
A short sale transaction occurs when mortgage lenders allow the borrower to sell the house for less than the amount owed on the mortgage. The foreclosure process occurs when lenders pursue foreclosure on the house, often against an owner’s will.
Timing is also different. Short sales can take around 6 months to close, while foreclosures in New York generally take over 3 years.
Furthermore, a short sale is far less damaging to your credit score than foreclosure.
What is a deed-in-lieu of foreclosure? It’s a deed instrument in which a mortgagor conveys all interest in a real property to the mortgagee to satisfy a loan that is in default and avoid foreclosure proceedings
Can I get a loan modification because of Covid-19 and the coronavirus? Maybe! A loan modification is a change of the existing terms of your mortgage. It requires an application and proof of hardship. This is usually the best settlement method when homeowners are in default on their mortgage.
Although there are many foreclosure lawyers out there, you need the most effective foreclosures lawyer to thoroughly explain these different options to avoid foreclosure and which one is best for you.
What if the mortgage I have is through a federal program? What can I do?
You may qualify for assistance under The Coronavirus Aid, Relief, and Economic Security (CARES) Act. It imposed a 60-day foreclosure moratorium starting March 18, 2020, for federally backed mortgage loans, including FHA-insured reverse-mortgage loans. You may also qualify for programs that include options to forgive any amounts that have been deferred as a result of Covid-19.
Accordingly, you need to consult with a stop foreclosure lawyer to discuss your reverse mortgage options and if you qualify.
Foreclosure vs bankruptcy and which is worse? How long does foreclosure take in NY? How long does a foreclosure stay on your credit?
A bankruptcy stays on the individual’s credit report for 7 years. A foreclosure will too, stay on the credit report for 7 years. Credit counselors believe that it has a worse impact on a person’s credit score than a bankruptcy if it does not include the house. Accordingly, some people consider bankruptcy to avoid foreclosure. You should consult a stop foreclosure lawyer or New York foreclosure lawyer to fully explain which is best for you.
Before Covid-19, the foreclosure process in NY would average over 1,100 days long. However, now with Covid-19 and with the New York courthouses closed as well as a backlog of cases, there’s no telling what the average length is now. New York has imposed its own moratorium on foreclosure auctions during this pandemic.
When is it too late to stop foreclosure? What happens after foreclosure? How to delay eviction after foreclosure? How to stop a foreclosure auction immediately? How do I know if I need a foreclosure attorney? What does a foreclosure attorney do?
After the foreclosure is done, you may voluntarily vacate the property after the foreclosure auction. Failing to voluntarily vacate the property results in an eviction lawsuit by the new owner. An eviction lawsuit in New York can take anywhere from 3-12 months depending on the county the property is located in.
Additionally, judicial foreclosures like in New York, allow the lender to pursue a judgment for the deficiency balance owed on the property after the auction. However, a short sale will protect the homeowner from such a deficiency judgment.
Luckily, it is never too late to stop a foreclosure, especially if it’s due to Covid-19, and you should therefore consult an experienced foreclosure attorney as soon as possible to discuss your options to avoid foreclosure, whatever stage of foreclosure you’re in. A foreclosure attorney who is representing the homeowner can:
A) help the homeowner through the pre-foreclosure process;
B) can provide foreclosure defense by litigation in the courts;
C) help homeowners negotiate with lenders to facilitate a short sale or a loan modification; and
D) help the homeowner explore other options to avoid foreclosure.
The Law Office of Yuriy Moshes PC represents all types of homeowners affected by Covid-19 in the greater New York City area including all its boroughs, including Manhattan, Brooklyn, Queens, the Bronx, and Staten Island) as well as Northern New Jersey, Long Island, and Upstate New York. If you’re struggling with foreclosure and are concerned about the foreclosure lawyer costs, do not worry. It is a free consultation. Accordingly, it is very important that you consult with an experienced foreclosure attorney to discuss your house foreclosure during this Covid-19 pandemic.
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