If you live in New York and your bank has started the foreclosure process, this more of what you need to know.
The Foreclosure Process in New York and Where You Can Fight Back
In part one of this series https://www.ny-bankruptcy.com/how-can-i-stop-the-bank-from-foreclosing-on-my-house-part-1/ we covered the first five of the ten steps of the bankruptcy process in New York. Today, we’re looking at the last five steps and how, in each step, there are ways to stop the process, or at least mitigate the damage.
Step 6 – Referee Hearing or Computation
As part of the Motion for Summary Judgment (see step 5) the court may have appointed a “referee” to figure out exactly how much you owe. This usually happens when you have not been an active participant in the process (ignoring notices and court appearances for example). The referee is given limited power by the court, so referees should only act within what the court assigned them. Sometimes however, a referee will overstep their bounds. Your foreclosure attorney should be able to catch any mistakes made by the referee and have their report challenged. This can slow down the process to give you more time negotiate a better outcome.
Step 7 – Motion for Judgment of Foreclosure and Sale
Whether the lender was granted default or summary judgment, after referral to a referee for a report and recommendation, the lender will generally move the court for judgment of foreclosure and sale. Once the order of judgment and sale is entered, your options for legal relief dwindle; accordingly, it is important to recognize your legal rights both immediately after entry of judgment and during the motion process. Your foreclosure lawyer still has some options here including raising the issues of standing, possession, 90-day notice, service, bad faith negotiations, and predatory lending. Click here to learn more https://www.ny-bankruptcy.com/motions-for-judgment-of-foreclosure-and-sale-in-new-york/
Step 8 – Foreclosure Sale Notice
If you have lost all previous judgements, the court will now order the sale of your property and will choose a date for it to go to public action. The sale has to be advertised for at least 20 days. This gives your foreclosure attorney time to call for an Order to Show Cause. Orders to Show Cause are emergency motions and can be pursued in the Supreme Court of New York to obtain urgent relief such as the voiding of a judgment or the stopping of a foreclosure sale and/or the extension of your time to answer the complaint. Your foreclosure attorney can argue that the foreclosure should be stayed because of technical and/or substantive reasons and that you should be given more time and opportunity to pursue options, like modification, refinancing and/or a voluntary sale that have a good chance of resolving the foreclosure situation. Learn more about Orders to Show Cause here – https://www.ny-bankruptcy.com/foreclosure-extra-page-1/. Also, as with any previous foreclosure step, declaring Chapter 7, 11, or 13 bankruptcy will immediately halt the sale process.
Step 9 – Closing on the Referee Deed
In this step, once someone has placed the winning bid in the auction for your property, the court referee must transfer the property deed to the new buyer. This usually takes two weeks to get all the paperwork together for the final closing. Your foreclosure attorney may still be able to call for an Order to Show Cause (see above). You will no longer be able keep your home (unless you are able to purchase it from the buyer), but your foreclosure lawyer may be able get you more time to find a new place to live.
Step 10 – Eviction of Former Owners
The buyer of your property is now its legal owner – now what? If the buyer was a real estate investor who was looking to rent the property, you may be able to work out an agreement to become their tenant. You may even be able to put together a Rent to Own Agreement in order to someday buy back your house (learn more here https://www.ny-bankruptcy.com/is-rent-to-own-a-good-idea/). However, most buyers want the property free and clear and that means you have to go. One option you may want to look into is a Cash For Keys agreement, wherein the buyer will give you some cash to cover your moving expenses if you agree to leave in a agreed upon time period (learn more here https://www.ny-bankruptcy.com/what-is-a-cash-for-keys-agreement/). Ultimately, they are going to want you out and will start a formal eviction process. Your foreclosure attorney can also help here. They can defend the eviction action through various legal means, giving you more time to relocate. And, as with other steps, declaring bankruptcy will also stop the eviction process in its tracks.
What to Do Now
No matter where you are on the foreclosure cycle, having the right foreclosure lawyer by your side can make all the difference. Make sure your foreclosure attorney is experienced with foreclosure defense, distressed mortgages, mortgage modifications, short sales, foreclosure avoidance, and negotiation/debt settlement. Reach out to New York foreclosure attorney Ronald Weiss for a free consultation. He can guide you through the available options for your specific needs. Working together, you can find the right choice. Ron can get the process started and will be at your side the whole time. Call 631-271-3737 and take the first step to a fresh start.