The New York State Department of Financial Services (www.dfs.ny.gov) has a useful timeline showing
what you can expect if you go into foreclosure and do nothing, and when you can
expect it all to happen. Here is the timeline:
When you fall behind on your
mortgage payments, you can expect most lenders to react quickly. Here is a
general time line of what may occur following your first late payment and
ending in foreclosure. This is taken from the Department of Financial Service’s
website, but has been modified to reflect our real-world experience in hundreds
of foreclosure cases over the last ten years in New York.
1st
month:
|
· You miss a mortgage payment.
|
2nd
month:
|
· A late charge is assessed on payment. The loan servicer
(the company that processes your mortgage payments) will send you a notice or
otherwise attempt to make contact with you.
|
2 to 3 months:
|
· If your mortgage is for a home you live in, the lender
or loan servicer must send you a pre-foreclosure notice at least 90 days
before commencing foreclosure. This 90-day window gives you a chance to work
with your lender to find an alternative to foreclosure. The notice must tell
you how much you must pay to bring the loan current. It must also give
you the names and phone numbers of at least five government-approved non-profit
counseling agencies in your area.
|
3 to 4 months:
|
·
The loan servicer must
send a "demand" or "default" letter stating that you have
violated the terms of your mortgage. You will be given 30 days to pay the
delinquent amount and the late charges.
|
4 to 5 months:
|
·
The servicer will
begin the legal process of foreclosure. This may include sending the loan to
its foreclosure department, hiring an attorney to sue you, and recording a
formal notice of foreclosure or “lis pendens” with the court and serving you
with notice of the action through a “summons and complaint.” These
proceedings can take 7-9 months.
|
6 to 12 months:
|
·
Once a summons and
complaint has been served on you and the lender files proof of service with
the court, the court is required to schedule a settlement conference within
60 days. This is an opportunity for you to meet face to face with your lender
or lender’s representative to reach a resolution of the case. You should try
to meet with a housing counselor or attorney prior to the conference. You
should bring proof of income such as your two most recent pay stubs and most
recent tax return to the conference.
|
6 to 12 months
(continued)
|
·
You will also have
to respond to the summons and complaint. If you do not respond, the court will
issue judgment by default, appoint a referee to calculate what you owe, and
schedule a foreclosure sale. If you do respond, you have a chance to present
any legal arguments you might have.
|
12 to 24 months:
|
·
If the court
issues judgment against you, a foreclosure auction sale will be scheduled. The
sale usually occurs at least 4 months after the court ruling. A notice of
sale is published in a newspaper once a week for at least 4 weeks prior to the
sale date.
|
If you do
nothing, the foreclosure process in New York City currently takes about 18 to
24 months, depending on which county you are in, from the date of the first
missed payment to the sale of your home.
Foreclosure sales in New York are
by public auction, usually at the county courthouse. The home is sold to the
highest bidder and anyone, including the lender, may bid. Once payment is made
and the sale is complete the winning bidder takes ownership of the property. At
that point, once a sale is complete, you have no
right of redemption. You lose your house forever, and eventually the new
owner will evict you if you are still living there.
It is possible to do all this without an attorney, but
getting legal advice is always a good idea in these circumstances. Court
personnel generally are helpful, but they won’t give you legal advice.
For more information about this topic or anything else we do, ask us. We’re here to help.
Call, visit or click for more information:
Levy & Nau P.C. / attorneys at law
844-LEVY-LAW or
718-622-8150
854 Fulton Street,
Brooklyn NY 11238
