How to Save My House From Foreclosure Auction in New York

Foreclosure is scary but it doesn’t have to mean the end of the road. Thankfully, there are several methods that could be utilized to slow or possibly stop your home from being foreclosed upon.  In New York, a foreclosure auction can only be held if approved and ordered by a judge. 

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If your mortgage is in arrears (meaning it’s delinquent), it is in your best interest to speak with an attorney to discuss how to stop a foreclosure sale. When you call Moshes Law, an experienced attorney will help you review your financial situation and discuss the best option available to you. 

How Does a Foreclosure Auction Work?

Thankfully, a foreclosure auction can’t be scheduled overnight. When you are behind on your mortgage  and facing foreclosure, it’s important to understand the different steps in the  foreclosure process timeline:

• 90 day letter – you should receive a pre-foreclosure letter which is a notice alerting you that you have 90 days before the mortgage company files the paperwork to initiate the foreclosure proceedings. If you’ve received one of these, it’s likely in your best interest to speak to an expert. 
• 30 day letter-you will receive a letter from the mortgage lender outlining the debt owed and giving you 30 days to respond.

There are variables that fit into the above and additional steps that will be taken but from the date of the first missed installment to the actual sale of the home, a typical New York foreclosure takes approximately 15 months. If you need to know how to stop a foreclosure auction immediately, contact our law firm today. 

Once a judge in New York has approved of a foreclosure auction, the home can be sold by the lender. Lenders can choose to do an online auction or one that’s held in person. The lender will set an asking price and then accept the highest bidder. 

There are times that a lender will bid on the foreclosure property themselves. The property then becomes a bank owned home which the bank will then sell. These types of properties are sometimes referred to as REO’s (real estate owned properties).

Can A Foreclosure Auction Be Stopped

A foreclosure auction in New York can be stopped when you are well informed and prepared. In New York, a court order is required in order for a mortgage lender to foreclose on a property. The earlier in the process you reach out to an attorney, the better your chance will be to stop a foreclosure auction immediately. 

If you’re not worried about your credit score and meet other criteria, you may be able to file for bankruptcy. Alternatively, if you want to stay in your home and your financial future has stabilized you may be able to get a loan modification. 

How to Save My House From Foreclosure Auction

There are many ways that you can stop your home from going into foreclosure.  Applying for a loan modification, requesting a deed in lieu, filing bankruptcy, or doing a short sale are some of the steps available to you. 

Filing for Bankruptcy

Bankruptcy isn’t a magic wand for halting a foreclosure but it can help stop or delay an auction. Sometimes that delay is all you need to get things in order. Once bankruptcy is filed, the court issues an automatic stay – what this means is that your creditors are temporarily halted from collecting money. This includes your property. This will delay an auction unless the lender files a motion to reverse the automatic stay. 

If the lender applies for an automatic stay and it’s approved, the lender will then be allowed to proceed with the sale. 

Apply for Loan Modification

Your current situation will dictate your options and it’s possible that you may qualify for a loan modification with your current mortgage lender. If you qualify for a loan modification, your lender may reduce your monthly mortgage payment by extending the life of your loan or refinancing your loan. Getting approved for a loan modification will depend on your credit health, ability to repay future payments, and overall financial health. Sometimes, a better payment plan can be the best way to stop a foreclosure auction from judicial approval. 

Request a Deed in Lieu

Requesting a deed in lieu can benefit both sides. Unfortunately, the current resident/homeowner has to vacate the property and relocate, but the lender forgives the debt. This can avoid costly court time and the details can be kept more private than if the property were put up for public auction. 

Attempt to Make a Short Sale 

Short sales are not simple but if the only alternative is to foreclose, then it’s certainly worth looking into your options. Your lender has to approve of a short-sale. The house is put on sale and once an offer is obtained and accepted, the lender will forgive the original home-owner’s debt. This process allows the homeowner to avoid foreclosure, the bank to earn some of their investment money back, and allows a new person to become a homeowner at a discounted rate.  

Additional Ways to Stop a Foreclosure Auction Immediately

If the above options aren’t going to work for you, don’t worry, there are still other options to consider. The foreclosure process follows a specific timeline and knowing what to expect when can be helpful in reducing the stress of the process. 

Learn how to stop foreclosure auctions immediately by contacting Moshes Law Firm in New York at 888-445-0234.

Paying Off Your Mortgage 

We understand that there could be any number of reasons why you’re currently in foreclosure. If your situation has improved and the delays have awarded you the ability to pay the entire mortgage balance then this is the time to take that option. Redeeming your mortgage with your lender, meaning paying it off in full, will prevent the lender from foreclosing. Lenders are not legally allowed to refuse a redemption. Thus, paying off the mortgage will prevent legal proceedings from going forward. 

Negotiate With Your Mortgage Lender

If you are about to get behind on mortgage payments, or already have, consider talking to them about your financial situation. It’s possible they will have options to keep you from going further into default. From granting a temporary forbearance to deferring some of your costs and payments your lender will have options for you that can help you halt the foreclosure process. 

Buying At Auction

A short sale occurs when a home is sold for less than what it’s worth. This often occurs in foreclosures. If your home is going into the foreclosure process, placing it on the market can halt the foreclosure process if the lender agrees. 

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There are two types of short sales: an “arm’s length” and a “non-arm’s length” sale. Understanding the implications of getting involved in a non-arm’s length sale is dire as it could likely result in you committing criminal fraud without even realizing it. If you’re wondering if you can you buy back your short sale home, you need to consult with an attorney.  

Sue Your Lender

Lenders are supposed to act in good faith and sometimes the trust we put in them leaves homeowners in over their heads. A wrongful foreclosure occurs when your lender fails to disclose pertinent information about the loan or home,  purposely misled you by giving you wrong documents,  or began foreclosure proceedings without cause, you could sue them. 

Stop Foreclosure Sale – What Option is Better For You

New Yorkers have endured a lot in the last few years. Facing foreclosure in these uncertain times is just one more hardship to survive but with the right people by your side, Moshes Law can help stop a foreclosure sale. 

Depending on where you are in the foreclosure process, it may be possible to stop the foreclosure process. Understanding how long the foreclosure process takes, can be very helpful in delaying or stopping you from losing your property. 

FAQ

Get Help From Attorney With Foreclosure Auction 

Moshes Law is your friend in the fight against foreclosure. Whether you need advice on your options or assistance in pursuing a case against your lender, contact Moshes law Firm today at 888-445.0234.

We can help you get the information you need on how to stop a foreclosure sale.