Individuals in New York often face of variety of hard financial decisions throughout their lifetime. Many residents can face difficult financial times that necessitate extreme actions. For example, many individuals may be searching for debt relief options that would help them avoid foreclosure.
While trying to avoid foreclosure, some individuals may try to sell their property. In this situation, there are laws in place to protect homeowners from individuals who may be trying to take advantage of the situation.
More specifically, the Home Equity Theft Prevention Act protects sellers who are selling while their home is in default or foreclosure proceedings. Under this act, individuals may have the opportunity to cancel the contract between the seller and the buyer in certain situations. Generally, it applies when there is a buyback agreement in the contract that allows the seller to buy the house back from the buyer at a future time.
When the HETPA applies residents from New York have the right to a complete contract. This means that the contract must include information from both the buyer and the seller and be completely filled out, signed and dated. The complete terms of the agreement must also be listed in the contract in order for it to be valid.
Individuals also have the right to cancel the contract under the protections of this act. Specifically, individuals have five business days to cancel the contract.
The act also gives individuals the right to an honest and fair sale of the property. This means the buyers cannot deceive the sellers about the value of the home, the money that they will receive as a result of the sale or how much time is left before the home will be foreclosed upon.
There are many complicated legal factors that come into play when a person’s house is facing foreclosure in New York. Individuals who are facing foreclosure should understand their rights. Individuals should consider speaking with an attorney to protect themselves and their property.