Does the foreclosure process release a leasing tenant from the lease agreement in new york city?

by oliver on September 30, 2010

Question:

Does the foreclosure process release a leasing tenant from the lease agreement in New York City?

I have my lease for 1 year until April 2010. can the bank take me out before that?

Answer:

In this case, you will not be taken out of your home until that date. However, if you are behind your payments for at least three months, the mortgage company might be forced to file a foreclosure against you. Once the lender files for a foreclosure, you will receive a notice of default, informing your of your debt and upcoming foreclosure. You will be given a specific period of time in order to make your payments current. If you are quite hard up in keeping with your payments, try other options. During this period, you can talk to your lender and try to work out an agreement to prevent the process of foreclosure. You can apply for refinancing or loan modification program in order to prevent the occurrence of the event. You can also ask your lender if he agrees to a short sale wherein your house will be sold in the open market at a price which is near its fair market value. However, if you are not able to make agreements or make your payments current at this period, your house will be sold to the public thru an auction and you will be forced to move out of the area after the foreclosure is complete.

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