Islip New York Foreclosure Help, Defense, Laws and Process

 


Avoidance of foreclosure on your property is possible if one files for bankruptcy. However, this depends on the law of the land because foreclosure laws vary from state to state. If you’re in the risk of facing foreclosure, you could consider talking to your banker for a loan modification to assist you in purchasing your property. However, applying for mortgage help could also be of assistance in the purchase of property.

Stop Foreclosure in Islip, New York

New York foreclosures can be handled in or out of court. Nevertheless, court foreclosures are the more common of the two. Foreclosure cases take up to at least 15 months which is the longest duration compared to other states. When you’re facing foreclosure, it is best if you engage the services of an attorney or a well established advice agency for legal advice.

The lender may send a warning of foreclosure to the borrower though this is not obligatory in New York. The defaulter is informed of the pending foreclosure actions and is supposed to show up in court in response to the charges. However, if the borrower fails to appear, the court has a right to rule in favor of the lender. At this point, a foreclosure sale is planned. The foreclosure proceedings may take up to 7-9 months to finalize.

The auction is planned at least 4 months after the court judgment. The sale is carried out at the county court house whereby the property is sold to the highest bidder and any other interested parties including the lender. The one who wins the bid pays 10 percent of the final bid at the auction and the balance within 30 days. Once all the money has been paid, the bidder can take up the property. Government assistance is offered in New York for those in need.

Islip, New York Foreclosure Process

Both judicial and non judicial processes are available in New York. The non-judicial process is not commonly used in comparison to the judicial process. The judicial process requires the lender to sue the borrower so as to get a foreclosure judgment. Below is a step by step account on how the process works:

  • A summon and complaint is filed together with a recorded notice of a pending lawsuit after which the borrower has 20 days to respond by appearing in court.
  • If the defaulter fails to respond within the 20 days, a motion for summary judgment is passed. The court appoints a referee to resolve the issue by determining how much money is owed as well as suggest how the asset should be sold. Once the report is verified by the court, a ruling is made authorizing the sale of the property. Government help is best sought at this point for guidance and legal advice.
  • This is followed by an advertisement in the local newspaper running for four consecutive weeks. A public auction is carried out by the sheriff to sell the property whereby the highest bidder is accorded the asset. The lender is also has the choice of bidding. However, the lender must allocate the proceeds as per the court agreement.

The non judicial foreclosure process comes into effect when a power of sale clause is present in a deed of trust. The power of sale clause is one that the borrower pre-authorizes the property sale to set off the balance on a loan should he default the stipulated terms. In mortgages, the existence of the power of sale clause is carried out by the lender also referred to as a trustee. For you to qualify for another loan repair credit early enough. New York does the borrower has no redemption rights once the sale has began.