What is a Foreclosure?

A Foreclosure happens when a Homeowner is about three to four months behind on Mortgage payments. The Lender(Plaintiff/Bank) will then try to recover the collateral (house) through a legal process called Foreclosure. In New York State, The Lender(Bank) will start by mailing you a notice called a Pre-foreclosure notice at least 90 days before stating the court case. The 90 days Notice has to be mailed by registered, certified mail and regular mail to the property address as well as any other address the lender or servicer has on file, to ensure the homeowner/borrower will receive it. The Notice also has to be in English and for non English speakers, in any other of the 6 most common languages spoken in New York State: Spanish, Russian, Chinese, Italian, Korean,Haitian-Creole that the homeowner is proficiency or most comfortable in.

90 Day Notice must state the following:

1. The number of days you have missed the payment
2. The Amount you must pay to catch up
3. The contact number for the lender or servicer or bank
4. A list of at least 5 Non for profit low cost government approved agencies you can ask counseling and help to avoid foreclosure
5. The New York State Dept. of Financial Services free helpline contact number and website

It is of vital importance to not wait but to seek help and if nothing is resolved during the 90 days the lender-bank-servicer will now go to court and file a Summons and Complaint "if you have not taken any action to resolve this matter within 90 days" If a 90 days notice is sent to a homeowner and the homeowner makes good on the payments but within a period of time defaults on the payments a second time, the lender will issue a new 90 day notice and will wait for 90 days before commencing a legal action.

Summons and Complaint

If after 90 days have passed with no clear resolution the Lender-Bank-Servicer will file a Summons and Complaint with the Court along with a "Lis Pendens". You are then served in person or by mail by anyone 18 and older and not involved in the lawsuit. (most of the time by a Process Server). Avoiding and hiding from a Process Server does not negate the lawsuit, the court can employ alternative options to complete service, to continue the lawsuit and find you in default. Best bet is to accept the documents and strategize ways to to resolve the issues and speak to your lawyer.

Your Answer and Defenses

Once a homeowner receives a Summons and complaint, in New York State an answer but be filed with the court within 20 days, giving your side of the story, defenses you may have and any claims against against the lender-Bank

MANDATORY SETTLEMENT CONFERENCE

On the court date, both Homeowner or their attorney(s) will appear in court as well as the Bank attorney (s) to see if a resolution can be had to prevent the foreclosure. Most times it takes several conferences to try to resolve the foreclosure issue. If the homeowner didn't give an answer they maybe allowed second chance answer 30 days from first conference.

If anytime during the conference the homeowner and the lender-Bank can come to an agreement the case is then considered settled and closed. An agreement may be a Loan Modification, a short sale, an agreement to pay in full by a certain date past due and reinstate the loan, a deed in lieu, a forbearance.

TRIAL

If for whatever reason the Homeowner and the Lender can't find a solution during the mandatory Settlement conference, a trial date will be set. Both parties return to court. The Discovery period, where both sides present evidence why there should be a foreclosure( Bank argument) and there should not be a foreclosure( Homeowner's argument). Facts and matters of law are presented, usually in a series of motions and counter motion each side proving their case. If the presiding judge agrees with the Homeowner a dismal will be granted, if the Court agrees with the Lender then the lender can move forward with seeking either a Summary judgement (if the homeowner answer) or a default judgement (if the homeowner (failed to answer or show up in court)

A REFEREE IS APPOINTED BY THE COURT

A court appointed referee will then compute the amount the homeowner owes the lender in addition to court fees, attorney's fees, administrative fees and his/her fee. This is presented to the court and the Lender's attorney will file a motion to confirm referee's report and through a motion see an order of Foreclosure and Sale of the subject property.

AUCTION AND SALE.

A date, time and place is set to auction off the property. This information is to be published in a newspaper/publication for at least 21 days. Copies are also mailed to the Homeowner. The property is auctioned off to the highest bidder on the date, time and placed specified.

OTHER OPTIONS

If you are currently in foreclosure, you have other options in finding a solution. You may choose to sell your house yourself on the open market "For Sale By Owner" List and Sell with a REAL ESTATE AGENT  or sell to a CASH BUYER.

FOR SALE BY OWNER:

You can walk away with more cash in your hand, but can you qualify the buyers that want to buy your house? Do you like doing open houses each weekend with tons of strangers walking through your home? Cleaning after they leave? Not such if they have the funds, while all the time the Foreclosure is still looming and getting closer.

Selling WITH AN AGENT

Time is of the essence for you. Agents deal with Banks who have specific requirements. From an Offer from a Buyer, to an appraisal, an inspection, a loan application, underwriting by the Bank, getting an attorney or Title company, ordering credit Report all the while you WAIT and WAIT wondering why is it taking so long to get to the closing table. They may ask you to do a repair here and there as a requirement for closing and  making the home habitable. Then the deal might fall through because the Buyers were not approved for the  Mortgage

SELLING TO A CASH BUYER LIKE BELLONYS

Cash Buyers have their own funds and don't need Bank shenanigans. Our process is easy and simple.There are no open houses with tons of strangers walking through your home each and every weekend until you have a buyer. You have  No Commissions to pay, No Repairs to be done. We buy your house in AS-IS condition, in foreclosure situation and where is. The closing is quick and on your own terms, if you need more time to move We can accommodate  you.

Click here to SEE HOW OUR PROCESS WORKS