What Are My Legal Options to Avoid Foreclosure?

New York has laws that are geared towards helping people avoid foreclosure whenever possible, but to access all your rights under the law and defend yourself, you should to talk to a local Forest Hills, NY foreclosure defense attorney as quickly as possible.

You should’ve gotten notice of intent to begin foreclosure at least 90 days before the process was begun. If you haven’t gotten that notice, then the first step your lawyer will take will be to bring the foreclosure process to a halt until this requirement has been followed. There may be other requirements, too. For example, there may be a terms in your mortgage contract that require you to be sent a certain letter, and federal law also requires that whoever services your loan must let you know specifically how to avoid foreclosure. If any of these steps have been skipped, you can buy some time.

Otherwise, there are various options available, and you definitely want to talk to an attorney to make sure that you’ve explored everything available to you. In general, some of the most common ways to avoid a foreclosure include filing for bankruptcy, reinstating the loan, or redeeming the property before it’s sold.

Reinstating the Loan

Under New York law, you as the homeowner have the right to reinstate your loan at any time before a final foreclosure judgment is made. If you’re able to pay off the amount you are in arrears, then in most cases you can just resume payments.

Redeem the Property

If you can pay the full amount of the loan before the property is sold under foreclosure, this is another option. It must be done before the property is sold, however. 

Filing for Bankruptcy

If you have a foreclosure sale coming up quickly and there’s nothing else you can do, declaring bankruptcy is a possibility. As soon as you file, an automatic stay goes in place that prevents the lender from foreclosing or continuing to pursue you for the debt until your bankruptcy is worked out. The stay goes into effect whether you file for Chapter 7 or Chapter 13 bankruptcy, and you’ll need to talk to an attorney about the best choice for you.

Request Forbearance or Modification

A final option is to request that the lender either temporarily suspend your monthly payments for a short time so you can catch up or modify the loan completely. Since the goal of most lenders is simply to get their money back, they are often amenable to the suggestion. If, for example, you have lost your job but have several prospects in the pipeline, the lender may be willing to suspend your monthly payments for six months until you’re able to get into your new job and start making payments again. If you’re facing foreclosure, there are options available to you. Contact the Law Offices of Joseph H. Nivin, P.C. in Forest Hills, NY for help in Queens and surrounding areas.

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