Homeowner's guide to new york state's foreclosure process
Borrower falls behind with mortgage payments
Borrower has 90 days to work with lender and pay penalties and resume payments to prevent fling of foreclosure suit
Lender sends 90-day pre-foreclosure notice (as required by RPAPL sec. 1304) Foreclosure prevented: Borrower works with lender to resume payments and continue with original mortgage
t o default: Borrower cannot make payments
Lender sends acceleration letter Entire balance due
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Foreclosure Suit Initiated
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Lender fles lis pendens and summons and complaint with county clerk's offce
Lender serves borrower with summons and complaint
Borrower must fle answer to lender's complaint within 20 days, if personally served, or 30 days, if served by mail, to avoid default judgment
Borrower doesn't answer = default in foreclosure case
Borrower answers: defenses against foreclosure and counter-claims
Mandatory settlement conference takes place within 60 days of lender fling proof of service and request for judicial intervention (as per cplr 3408) If borrower not eligible for modifcation, court permits lender to proceed with foreclosure
summ a
order of reference signed by judge, court appoints referee who computes amount owed by borrower
Lender fles motion for judgment of foreclosure and sale
Discovery: Borrower and lender request and produce relevant documents and evidence.
foreclosure prevented: If borrower eligible for modifcation, mortgage reinstated. borrower makes payments under new loan terms.
Lender fles motion for order of reference.
ry ju dgmen t gra nted
Lender fles motion for summary judgment
summary judgment denied
Right of redemption period ends just before auction. Up to this point, homeowner may avoid auction through short sale or deed-in-lieu-offoreclosure, if lender agrees.
Court signs order. lender arranges sale date with court-appointed referee.
P r i o r
Trial or settlement
AUCTION: property sold to highest bidder.
f o r e c l o s u r e