So you find yourself behind on your mortgage. That feeling can be scary. More scary is the bank starting a foreclosure against your house. However, while foreclosure is scary, there are good options on how to deal with it.
In New York, foreclosure starts when the bank sends you a 90 day demand for payment letter. This letter states exactly how much you must pay to bring the mortgage current, a figure called the “arrears”. If you do not pay the arrears, the bank will then start a foreclosure action against you.
Again, I know that sounds scary but in a lot of ways, foreclosure can give you power over the bank.
Once started, the bank must put the case into the Foreclosure Control Part (“FCP”). When a foreclosure case goes into FCP, the court will notice you by mail for a settlement conference. At the settlement conference, you are invited to try to save your the house by modifying the mortgage and the court will instruct the bank to provide you with a mortgage modification application and will give you a time frame to apply for a modification.
The court will then schedule a further settlement conference. At the settlement conference, you will meet with a court referee to determine how the modification process is proceeding.
During these settlement conferences, the bank may ask for further documents or reach a decision on your file. Hopefully the bank offers you a mortgage modification. If they don’t, then the bank denial must be scrutinized to see if the bank denial was issued in good faith.
Too often I find banks will deny my clients although they clearly have the income to support a modified mortgage payment. In that case, resistance must be put up with the bank and in court to enforce your rights.
If you find yourself behind on your mortgage or a foreclosure has been started against you, please contact the Law Offices of Gregory A Flood and let us see what we can do for you.