For New Yorkers, their home can be a safe haven. Not only does provide shelter, but it is the source of many positive memories for most people. When financial problems threaten a person’s home, that person can have a lot of different emotions. It is important for individuals who are facing financial issues to understand how these issues can affect their home ownership.
If you miss a payment on your mortgage, a series of steps will be enacted by the lender leading to a foreclosure. Through the foreclosure process, the lender will try to collect the money it is due by selling the property. A payment in New York is considered late after 16 days. Between day 16 and day 30, the lender can assess a late charge to your account. The lender will often try to make contact with you in order to determine why the payment was missed.
According to the New York Department of Financial Services, if the payment is still not made, between days 30 and 60, the lender can send a pre-foreclosure notice to you. This notice must be received 90 days before foreclosure will commence. In this notice, you must be given options of government approved agencies that provide housing counseling services.
Between days 45 and 60, the lender can send a letter to you notifying you that you have breached the terms of the mortgage. In this letter, you’ll have 30 days to pay the delinquent amount on the mortgage and any late charges.
If the mortgage is still not paid for 90 days, the lender can initiate the process of foreclosure. This process can take many months and variety of steps will need to be taken. Typically, in New York a foreclosure can be completed about 15 months after the first payment was missed.
It is important for New Yorkers to understand how the foreclosure process works. There are many steps that can be taken prior to a foreclosure to avoid loss of your home. An attorney can give individuals specific legal advice about pre-foreclosure and foreclosure proceedings. This blog post should be used only for general information and attorney should be consulted for more specific requests.