Legally reviewed by Allen A. Kolber, Esq. - The Law Offices of Allen A. Kolber, Esq., P.C.
Key Takeaways
- Federal rules bar a servicer from starting foreclosure until you are more than 120 days behind.
- New York adds a 90-day notice, so most homeowners are four to seven months behind before a summons arrives.
- A contested New York foreclosure takes years, not months, because it runs through a court.
- You can reinstate the loan by paying what you owe at any point before the sale.
There is nothing more frightening than the prospect of losing one’s home. However, if you are someone in Rockland County who has fallen behind on your mortgage payments, there is a chance that you may now be facing foreclosure. Please continue reading and speak with our knowledgeable Rockland County foreclosure defense attorney to learn more about what happens if you miss a mortgage payment and how our firm can help if you have fallen behind. Here are some of the questions you may have:
Will I Lose My Home if I Miss a Mortgage Payment in New York?
If you miss just one mortgage payment, you will most likely not lose your home. In fact, if you only missed one payment and it never happens again, it will mean very little. However, if you do miss a mortgage payment, you should speak with the loss mitigation department at your lender as soon as possible and inform them of why you missed your payment and why it will never happen again. Additionally, if you know you have a mortgage payment coming up that you will not be able to make, you should speak with your lender and let them know, as they will try to work out an alternate payment plan with you.
How Many Payments Can I Actually Miss?
Generally, the number of payments you can miss before foreclosure is initiated is more generous than most people assume. Federal mortgage servicing rules prohibit servicers from making the first notice or filing the petition that initiates the foreclosure process until your loan has been delinquent for more than 120 days. This means you must have missed roughly four payments before the foreclosure process can even begin.
New York Provides an Additional 90 Days
Before a lender can begin foreclosure on an owner-occupied home in New York, it is required to send a pre-foreclosure notice. This notice must:
- Be mailed at least 90 days in advance
- Be sent through certified or registered mail
- Be sent by first-class mail
- Name each of the individual borrowers
This 90-day period typically runs alongside the federal 120 days rather than after it, but the impact is the same: most homeowners are four to seven months behind on mortgage payments before a summons and complaint arrive.
Two Important Exceptions
There are two important exceptions to the rule that filers should be aware of. As such, the 120-day rule is not applicable when foreclosure is based on you violating a due-on-sale clause, or when your servicer is joining a foreclosure raised by another lienholder.
Additionally, it protects the property that is your principal residence, rather than an investment property.
How Many Missed Payments Will It Take for My Mortgage Lender to Foreclose on My Home?
The first thing you should understand is that banks do not necessarily want to foreclose on your home. Banks are here to make money and collect interest, not collect real estate. For this very reason, if you are falling behind on your payments, you should speak with a knowledgeable New York foreclosure defense attorney as soon as you can; they will try to come up with a plan between you and your lender that works for you both. When homeowners take no action at all, the lender will push the case forward as quickly as the process allows.
How Long the Process Actually Takes in New York
New York is a judicial foreclosure state, meaning the lender is required to sue you and proceed through the court. Between the pre-suit notice periods, the time to answer, the mandatory case settlement conference, motion practice, a judgment, and finally a scheduled sale, a contested New York foreclosure can take years, not months.
However, this is not a reason to relax, as the arrears and legal fees will continue to accumulate throughout this process, though it is a reason to avoid panicking and relinquishing a house you can still retain.
You Can Reinstate Right Up to the Sale
New York gives you the right to reinstate the loan by paying what you owe at any point before the property is actually sold. Combined with a Chapter 13 plan, which can spread those arrears over three to five years, that means falling behind is rarely the end of the story even after a case has been filed against you.
However, with the help of our firm, we can significantly delay the process, and in many cases, we can even halt the foreclosure on your home altogether. If you have any additional questions, give us a call today.
Contact Our Experienced New York Bankruptcy Firm Today
The Law Offices of Allen A. Kolber, Esq. effectively represent clients facing Bankruptcy in Rockland County and all of New York State. Our firm understands the stress one can feel when facing a difficult financial future. Our compassionate staff will work to ease your fears and help you make a new start. If you need quality legal support, contact The Law Offices of Allen A. Kolber, Esq.
