Real Estate Foreclosures in New York City: What is the Process?
If you’re facing potential foreclosure on your home, you’re probably wondering how long the process will take and what’s involved. How long will it be until you actually have to leave your home, what legal proceedings will you face and will you have a chance to reverse these proceedings?
We’ll start by telling you that because New York is a judicial state, the process of real estate foreclosure in New York City will usually take up 15 months to complete.
The following is a breakdown of what you can expect to happen during these 15 months:
1. About 15-30 days following a missed mortgage payment, your lender will try to contact you or send you an official notice regarding your late payment.
2. Your lender must provide you with 90 days of advanced warning before starting foreclosure proceedings. This gives you time to come to arrangement with your lender and make payment. Typically you will receive this advanced warning 45-60 days following non-payment.
3. Once this 90 day period is over, the next 7-9 months will include the following actions: Your lender will likely pass your file to its foreclosure department and/or attorney to begin foreclosure proceedings. They will submit a notice of foreclosure to the court and you will receive a summons to appear at a settlement conference.
At this conference, the court will determine based on the evidence whether or not a foreclosure is necessary in your case. Usually, if are unable to offer a quick solution to bringing your payments up to date, the court will rule in favor of the lender and a foreclosure sale will be scheduled four months from the date of the conference.
4. The foreclosure sale will be an auction on which anyone can bid. Once your home is sold you will have to move out and you will have not possibility to repurchase is or bring your mortgage up to date.
For more information and to find out how we can help prevent you from losing your home, please register for a free consultation.