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Help for Homeowners

- Foreclosure Assistance - Help for Homeowners Facing Foreclosure.
- Find a Housing Counselor.
- If You Fall Behind.
- Know Your Options.
- Know Your Rights in Foreclosure.
- Settlement Conferences

- A Tenant's Rights in Foreclosure.
- Rent-To-Own and Installment Contracts.
- Renter's Insurance

- Basic Coverage and Adding Coverage.
- Force-Placed Insurance.
- Cancellations and Nonrenewals.
- Choosing a Policy.
- How Much Insurance Do You Need?
- Problems Obtaining Insurance.
- Flood Insurance.
- Understanding What Affects the Cost.
- Shopping for Insurance.
- Managing and Mitigating Losses

Residential Foreclosure Actions Consumer Bill of Rights

This Residential Foreclosure Actions Consumer Bill of Rights provides assistance to house owners facing foreclosure in New york city. A foreclosure is a suit, and house owners ought to seek help from a lawyer or housing therapist in checking out possible legal defenses to the suit. Homeowners must likewise understand their basic rights and commitments highlighted below.

Throughout the Foreclosure Process

You have the right to stay in your home and the duty to maintain your residential or commercial property unless and up until a court orders you to vacate. If you abandon your home, the plaintiff (bank or mortgage servicer) may have the ability to foreclose on your residential or commercial property through an expedited procedure in court. To prevent this result, remain in your home and carefully review and react to documents you get from the plaintiff or the court in your foreclosure case. A failure to react or appear in court when required to do so could make it much easier for the plaintiff to show that your residential or commercial property is vacant and deserted, which could put you at risk of an accelerated foreclosure.

You have a right to be represented by a lawyer and may be qualified for complimentary legal or housing counseling services.

You have a right to be devoid of harassment or foreclosure rip-offs. Strongly think about speaking with a lawyer or housing therapist, if offered, before signing any papers. If you are the target of harassment or fraud, contact DFS by calling our Consumer Hotline at (800) 342-3736.

You have a right to avoid foreclosure if you repay your loan completely at any time previous to the sale of your home, or if you work out a settlement with the plaintiff.

Before a Foreclosure Action Begins in Court

You have a right to be alerted at least 90 days before a foreclosure fit is filed informing you that you remain in default and at threat of foreclosure. You have the right to explore "loss mitigation" options that might permit you to keep your home and prevent litigation. The bank or mortgage servicer is required to help you comprehend your loss mitigation options. If you have sent a completed loss mitigation application, your bank or mortgage servicer must finish its review of your application before continuing with the foreclosure fit.

RPAPL § 1303 has been amended to need complainants in foreclosure actions to offer a more particular and useful notification to customers concerning their rights and commitments throughout the foreclosure procedure. Specifically, the notice must suggest that property owners have the right to remain in their homes up until a foreclosure sale happens and the commitment to keep their residential or commercial property and pay suitable taxes until such time. This section is intended to help prevent residential or commercial properties from ending up being vacant in the very first place. Read the particular language needed by RPAPL § 1303.

RPAPL § 1304 requires mortgage financial institutions to give borrowers a minimum of ninety days' notice before beginning a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") must include the following language: "As of ___, your mortgage is ___ days in default ... You can cure this default by making the payment of ___ dollars by ___." Unfortunately, debtors typically analyzed this arrangement to suggest that as long as the debtor offered the mentioned amount by the date specified, the loan would be restored. Quite often, the "cure date" specified in the PFN is the earliest date on which the financial institution can start a foreclosure action, which is 90 days after sending the PFN. When the borrower waits a full 90 days to offer the quantity specified, any missed payments and associated interest and charges from the intervening months would be contributed to the deficiency. In such a case, the customer who sends the quantity set forth in the PFN would remain in default due to stepping in accruals, in spite of his or her good-faith efforts to attend to the default specified in the PFN.

The brand-new law addresses this concern by changing the very first line of the notification to check out "Since ____ your mortgage is ____ days and ___ dollars in default." Similarly, it adds language to RPAPL § 1304 which highlights the borrower's continuous rights and responsibilities throughout the foreclosure procedure. Read the new pre-foreclosure notification language.

Once a Foreclosure Action Begins

You have the right to receive a copy of the legal documents in the foreclosure lawsuit when it begins. This is called "service" of the Summons and Complaint. You should react to the Summons and Complaint with an "Answer" within 20 days after you have been personally served, and within 30 days if served on you by other ways. The Answer is your opportunity to state your defenses.

You should consult with an attorney or housing therapist for aid in this procedure.

You have a responsibility to appear at all arranged court looks. If you fail to appear, you risk losing essential rights, which could cause the loss of the case and your home.

You have a right to demand court authorization to continue without paying court expenses.

At a Compulsory Settlement Conference

You have a right to a description of the nature of the foreclosure action versus you.

Both parties have an obligation to bring all required files to the settlement conference. For a general list of needed documents, check out the Mandatory Settlement Conference info page.

Both celebrations must work out in "good faith", which means truthfully and fairly. If you stop working to do so, you might lose the opportunity to pursue a court-supervised settlement. If the bank or mortgage servicer stops working to do so, the court might enforce similarly substantial penalties. Negotiating in great faith does not need either celebration to settle.

If you formerly stopped working to send a Response, you will be offered an extra 1 month to do so at the settlement conference.

After Settlement Agreement or Fully Executed Loss Mitigation Agreement

Within 90 days of completing a settlement, the lis pendens classification on your residential or commercial property, which alerts people that title to your residential or commercial property is in dispute, need to be lifted.

You may be responsible for extra taxes if you reach a settlement that consists of financial obligation forgiveness. Seek recommendations from a tax expert about any resulting tax consequences.

After Judgment of Foreclosure and Sale

Upon a judgment of foreclosure and sale, the brand-new owner can look for to evict you from the residential or commercial property.

If the home is resold for more than what you owe, you have a right to file an application with the court for the surplus funds, based on particular deadlines. It is very important to look for assistance from a legal provider if you believe you are owed a surplus.

If the home is offered for less than what you owe, the lending institution might file an application for a judgment against you for the distinction, understood as a deficiency judgment. You may have the right to object to the quantity of any shortage judgment, including interest and charges.

Get Help! Contact a Not-for-Profit Housing Counselor

Housing therapists that manage foreclosure-related problems can provide you guidance on your choices and resources at little or no charge. They may also be able to negotiate with your lending institution free of charge and help you find totally free legal services in your area.

Housing therapy resources for New Yorkers consist of:

- New York's Homeowner Protection Program (HOPP), which gets in touch with housing therapists and legal services at no charge. Call the HOPP hotline at (855) 466-3456 or check out homeownerhelpny.com.
- You can discover a list of approved non-profit housing counselors by county here, on the DFS website.
- 24-Hour support is readily available toll-free on the HOPE NOW hotline at 888-995-HOPE (888-995-4673). HOPE NOW is an alliance of HUD authorized counseling representatives, servicers, and financiers that offer complimentary help.
- If you reside in New york city City, you can likewise call 311.

If you are in a foreclosure lawsuit, you ought to consult a lawyer.

Seek Legal Assistance

Contact an attorney and examine your mortgage files. Make certain your loan is not in offense of any laws. If you do not have a lawyer, the New york city State Bar Association might be able to refer you to a proper lawyer for your scenario.

If you can not afford a personal lawyer, resources for totally free or affordable legal support consist of:

- New york city's Homeowner Protection Program (HOPP), which links with housing counselors and legal services at no charge. Call the HOPP hotline at (855) 466-3456 or go to homeownerhelpny.com.
- The New York State Bar Association's Lawyer Referral and Information Service.
- The Legal Service Corporation site.
LawHelp.org, an online directory of free legal provider in New York.