What Should I Do if I Receive a Foreclosure Notice?

Few things are more frightening to any homeowner than receiving a foreclosure notice. That said, if you recently received such a notice in the mail, you’re most likely very concerned about what’s going to happen next. The important thing to understand is that you have options, and our team can help you explore them–but you need to act quickly. Continue reading and contact a Rockland County foreclosure defense lawyer from the Law Office of Peter A. Hurwitz, PLLC to learn more about what to do if you receive a foreclosure notice and how our firm can help you remain in your home. Here are some of the questions you may have:

What Does a Foreclosure Notice Mean in New York?

The first thing you should understand is that not all foreclosure documents mean the same thing. For many owner-occupied home loans, lenders and mortgage servicers are required to provide homeowners with a pre-foreclosure notice at least 90 days before commencing a foreclosure lawsuit. This notice should explain how much money is required to bring the mortgage current and provide information about approved housing counseling agencies in your area.

The 90-day notice is essentially a warning that the lender may take legal action if the default is not resolved. It does not mean that you must immediately leave your home.

However, if you receive a Summons and Complaint, this means the lender has already filed a foreclosure action against you. At this point, you will generally have to submit a formal Answer within the following timeframes:

• 20 days if the papers were personally handed to you
• 30 days if the papers were delivered through another legally permitted method

These deadlines include weekends and holidays. If you fail to respond, the lender may request a default judgment, and the court may never have an opportunity to consider defenses that could have been raised on your behalf.

What Steps Should I Take After Receiving the Notice?

Rather understandably, some homeowners become overwhelmed after receiving foreclosure paperwork and are tempted to put it aside until they have a better idea of what to do. Unfortunately, ignoring the notice will not stop the process, and waiting too long may significantly limit your available options.

Some of the most important steps you can take are as follows:

• Read every document carefully.
• Keep the notice, envelope, Summons and Complaint, mortgage statements, and all other correspondence from the lender or servicer.
• Gather your bank statements, tax returns, pay stubs, payment records, and information regarding your monthly expenses.
• Contact your mortgage servicer and ask about any loss mitigation programs that may be available.
• Avoid signing documents or transferring ownership of your home without understanding what doing so may mean.
• Speak with a New York foreclosure defense lawyer as soon as possible.

What Options May Be Available to Stop or Resolve Foreclosure?

The option that makes the most sense will depend on several factors, including your income, the amount owed, your payment history, the value of the property, and whether you wish to remain in your home. Some homeowners may be able to resume making payments, while others may need to pursue a different solution entirely.

Potential foreclosure alternatives may include:

• Reinstating the mortgage by paying the overdue balance
• Establishing a repayment plan with the servicer
• Requesting temporary forbearance
• Applying for a loan modification
• Completing a short sale
• Negotiating a deed in lieu of foreclosure
• Selling the property before an auction takes place
• Raising legal defenses against the foreclosure action

Certain homeowners may also qualify for a court-supervised settlement conference, where the homeowner and lender can discuss modifying the loan, repaying the arrears, or reaching another agreement. Importantly, attending this conference does not replace the requirement to file an Answer. New York courts recommend that homeowners prepare their financial records and respond separately to the lawsuit.

Ultimately, just because you received a foreclosure notice does NOT mean that you will lose your home. However, time is of the essence, and the sooner you reach out to a seasoned Rockland County foreclosure defense attorney, the better. Fortunately, if you’re reading this, you’re in the right place, and you’ve already taken the right first step. Contact The Law Office of Peter A. Hurwitz, PLLC for an initial consultation today so we can discuss your circumstances and begin crafting a comprehensive defense on your behalf.