The foreclosure process can take up to 15 months in New York State from the first report of a missed payment to the day the property is sold at auction. While this can seem intimidating, homeowners need to realize that the lender does not want to foreclose on your property. The lender would rather work things out and there are many ways a lender can help you to get your mortgage back on track if you start getting behind on payments.
The First 30 Days
From day 31 to day 60 of a late payment, your lender will be attempting to make contact with you to discuss the late payment and give you your options. It is up to the lender at this point as to whether or not to take any pre-foreclosure action. In most cases, if you work with your lender, you will find that the situation can be worked out to the mutual advantage of both parties.
Once your late payment gets 60 days behind (90 days from its original due date) the lender will then send out a letter informing the homeowner that they are in violation of their mortgage terms. This letter will give the homeowner important information such as the exact amount of payment required to bring the mortgage current and how to make the payment. Once again, the lender will offer information on arrangements available to help bring the mortgage current.
Once the homeowner has racked up several late payments with no attempt to bring the loan current, the lender will then take all of the necessary actions to file a formal notice of foreclosure. This means referring the matter to the lender’s attorneys or legal group, posting a formal notice of foreclosure on the property, and informing the homeowner of the full foreclosure process.
Once the foreclosure action is filed, there will be a court date that you must attend to determine if the property can be foreclosed. If the court orders a foreclosure can take place, then the process will usually finalize with four to five months. If the court orders the two parties to continue to work things out, then there would be a stay in the foreclosure and negotiations can commence.
During The Process
In New York State, as with most states, the homeowner is not barred from talking to the lender at all. As a matter of fact, the lender and the courts encourage open communication to try and resolve the issue without the property going to foreclosure. With some lenders, homeowners have until only a few days before the auction to find the funds to bring the mortgage current.
If you do not pay your mortgage and you do not communicate with your lender, then you could be facing foreclosure proceedings. Most lenders will do just about anything to avoid having to go to foreclosure, and that can work in the favor of the homeowner. Many lenders have programs available that could lower the homeowner’s monthly payment and make bringing the mortgage current a reality.