Rockland County Judicial Foreclosure Defense Lawyer

Few things are more stressful than falling behind on your mortgage payments and wondering whether you are going to lose your home. Fortunately, if you are a homeowner, one of the most important things to understand is that receiving notice of a foreclosure does not automatically mean you have run out of options. In many cases, homeowners are still able to pursue a mortgage loan modification that can make their monthly mortgage payments more manageable and potentially prevent foreclosure altogether. Importantly, New York is a judicial foreclosure state. This means that homeowners are also afforded certain legal protections throughout the foreclosure process that simply do not exist in many other states. If you’re facing foreclosure, contact a skilled Rockland County judicial foreclosure defense lawyer from the Law Office of Peter A. Hurwitz, PLLC to learn more about how our legal team can effectively represent you and protect your rights, every step of the way.

What Is Judicial Foreclosure in New York?

Unlike some other states, New York requires lenders to go through the court system before they can foreclose on a residential property. This means a lender cannot simply repossess your home after you miss several mortgage payments. Instead, the lender must file a foreclosure lawsuit, prove its case before the court, and ultimately obtain permission from a judge before the property may be sold.

This additional legal process provides valuable time to explore alternatives to foreclosure, one of the most common being a mortgage loan modification.

A mortgage loan modification is designed to permanently change one or more terms of your existing mortgage loan so your monthly payments become more affordable. Rather than replacing your mortgage with an entirely new loan, as refinancing does, a loan modification restructures the mortgage you already have. Depending on your circumstances, a lender may agree to:

• Lower your interest rate
• Extend the repayment period
• Add missed mortgage payments to the end of the loan
• Adjust certain repayment terms to reduce your monthly payment

How Does the Judicial Foreclosure Process Work in New York?

There are several stages involved in New York’s judicial foreclosure process. Though every case is different, and some cases naturally move faster or slower than others, the process generally works as follows:

1. Missed mortgage payments. The process usually begins after several mortgage payments have been missed. During this time, your lender will often attempt to contact you regarding the delinquency, and additional fees may continue to accumulate.
2. Ninety-day pre-foreclosure notice. Before filing most residential foreclosure actions, New York law generally requires lenders to provide homeowners with a 90-day notice. This notice explains the default and provides information regarding foreclosure prevention resources that may be available.
3. Foreclosure lawsuit is filed. If the default is not resolved, the lender may file a foreclosure lawsuit in court. Once filed, you will be formally served with the foreclosure papers and given an opportunity to respond.
4. Mandatory settlement conference. Fortunately, many owner-occupied residential foreclosure cases require the parties to attend a mandatory settlement conference. Generally speaking, this is one of the best opportunities to discuss alternatives to foreclosure, including a mortgage loan modification.
5. Loan modification review. If you apply for a mortgage loan modification, your lender will typically review your financial information and supporting documentation before deciding whether to approve or deny your request. It is not uncommon for lenders to request additional documentation throughout this process.
6. Foreclosure litigation continues. If the parties cannot reach an agreement, the foreclosure lawsuit will continue through the court system, where both sides may present their respective positions.
7. Judgment of foreclosure and sale. If the lender ultimately prevails, the court may issue a judgment authorizing the foreclosure sale of the property.
8. Foreclosure sale. Finally, if the matter has not otherwise been resolved, the home may be sold at a public foreclosure auction.

As you can see, homeowners often have several opportunities to pursue alternatives before the foreclosure process reaches its conclusion. In many cases, the sooner you begin exploring your options, the better positioned you may be to negotiate with your lender before the case progresses further.

What Rights Do Homeowners Have During a Judicial Foreclosure?

Many homeowners are surprised to learn that they have important legal rights throughout the foreclosure process. New York law provides several protections that are intended to ensure homeowners are treated fairly before a foreclosure is finalized. Some of these rights generally include the following:

• Receiving required foreclosure notices before a lawsuit is filed
• Being formally served with foreclosure papers
• Filing an answer with the court
• Raising legal defenses when appropriate
• Participating in mandatory settlement conferences, when eligible
• Applying for a mortgage loan modification
• Being represented by an attorney throughout the foreclosure process
• Challenging certain lender errors or procedural defects
• Remaining in the home until the legal foreclosure process has been completed

One of the most significant protections available to many homeowners is the mandatory settlement conference. During these conferences, both parties are expected to negotiate to determine whether foreclosure can be avoided through a loan modification or another foreclosure alternative. Though there is certainly no guarantee that every homeowner will qualify for a modification, these conferences often provide an opportunity to resolve matters without the foreclosure moving forward.

Contact a Judicial Foreclosure Defense Lawyer in Rockland County, NY

If you have fallen behind on your mortgage payments or have already been served with foreclosure papers, it is generally in your best interest to begin evaluating your options sooner rather than later. The Law Office of Peter A. Hurwitz, PLLC has helped homeowners throughout Rockland, Westchester, and Orange Counties stay in their homes for decades, and we’re here to help you, too. Contact our legal team today for an initial consultation so we can evaluate your situation, and, from there, begin building a comprehensive strategy on your behalf.