In 2009, Governor Paterson signed foreclosure legislation aimed at protecting homeowners and tenants.
Protection For Homeowners:
NY foreclosure law now requires that a 90-day pre-foreclosure notice be sent to all homeowners facing foreclosure. This notice is sent prior to the start of the foreclosure action and allows additional time for many homeowners to work with their lenders to prevent foreclosure. Previously, this notice was only sent to homeowners who had sub-prime loans. Caveat: The 90-day notice period shall not apply, or shall cease to apply, if the homeowner does not occupy the 1-4 family dwelling as their principal residence.
This legislation also expanded the scope of the mandatory foreclosure settlement conference to include borrowers of all home loans. The foreclosure settlement conference provides the homeowner with an opportunity to negotiate a loan modification with their lender. Previously, foreclosure settlement conferences were only available to homeowners who had sub-prime loans.
Protection For Tenants:
NY foreclosure law now requires that tenants, residing in foreclosed properties, receive written notification of the change in ownership of the property. The law also requires that the tenant be allowed to remain in the the foreclosed home for the remainder of their lease term or 90 days, whichever is longer.
New York Foreclosure Attorney
As always, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you. Contact us at (516) 858-2620 to arrange a consultation with a foreclosure defense attorney.
Please visit our Foreclosure category to learn more about foreclosure issues.
When a person files a chapter 7 bankruptcy case, their non-exempt property (if any exists) is liquidated to pay as much money back to his/her creditors as possible. So, in a chapter 7 case the debtor could lose all or most of his/her non-exempt property.
A person filing a chapter 13 bankruptcy case usually retains his or her non-exempt property. However, he/she is required to pay the value of the non-exempt property to his/her creditors. The determined amount is usually paid by the debtor, through the chapter 13 plan, over 3-5 years.
Don’t be alarmed, many people contemplating bankruptcy have very little or no non-exempt property. However, you should consult with a knowledgeable bankruptcy lawyer if you are thinking about filing for bankruptcy.
Long Island Bankruptcy Attorneys
As always, the Law Firm of Vaughn, Weber & Prakope, PLLC at 516-858-2620 is here to assist you.
Please visit our Bankruptcy category to learn more about filing chapter 7 or 13 bankruptcy.
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