90 Day Pre-Foreclosure Notice
I just received a 90 day pre-foreclosure notice; what does this mean?
NY foreclosure law now requires that a 90-day pre-foreclosure notice be sent to many homeowners facing foreclosure. The 90-day notice requirement must be sent to homeowners, at risk of foreclosure, who own and occupy a 1-4 family dwelling as their principal residence.
The notice has to be in 14 point type and sent at least ninety (90) days before a lender, an assignee or a mortgage loan servicer commences legal action against the borrower. The 90 day foreclosure notice shall include the following:
“YOU COULD LOSE YOUR HOME. PLEASE READ THE FOLLOWING
NOTICE CAREFULLY”
“As of ___, your home loan is ___ days in default. Under New York
State Law, we are required to send you this notice to inform you that
you are at risk of losing your home. You can cure this default by making
the payment of _____ dollars by ____.
If you are experiencing financial difficulty, you should know that
there are several options available to you that may help you keep your
home. Attached to this notice is a list of government approved housing
counseling agencies in your area which provide free or very low-cost
counseling. You should consider contacting one of these agencies
immediately. These agencies specialize in helping homeowners who are
facing financial difficulty. Housing counselors can help you assess your
financial condition and work with us to explore the possibility of
modifying your loan, establishing an easier payment plan for you, or
even working out a period of loan forbearance. If you wish, you may also
contact us directly at __________ and ask to discuss possible options.
While we cannot assure that a mutually agreeable resolution is
possible, we encourage you to take immediate steps to try to achieve a
resolution. The longer you wait, the fewer options you may have.
If this matter is not resolved within 90 days from the date this
notice was mailed, we may commence legal action against you (or sooner
if you cease to live in the dwelling as your primary residence.)
If you need further information, please call the New York State
Banking Department’s toll-free helpline at 1-877-BANK-NYS
(1-877-226-5697) or visit the Department’s website at
http://www.banking.state.ny.us”
Ideally, the 90 day pre -foreclosure notice is sent prior to the start of the foreclosure action and allows a homeowner to work with their lender to prevent the foreclosure of their home. If you have received a 90 day foreclosure notice, you should consider calling a foreclosure defense attorney to discuss your options.
Long Island Foreclosure Attorneys
As always, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, NY. 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.
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.
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