Steps in a Typical Foreclosure Case A mortgage lender will wait until you have defaulted on your mortgage before it can file a foreclosure action, which generally means you have missed payments for 90 to days. The company must issue a demand letter and take other steps before a case is filed. Once the case is filed, the lender has a period of time during which it must notify you of the action against you and you have the opportunity to respond.
If you fail to respond within the given time frame, the court can issue a default judgment against you automatically granting the foreclosure. While this is the fastest way to resolve a foreclosure case in NY, it also inevitably ends up with you losing your home, so it is not preferable. Because you only have a limited amount of time to respond to a claim and avoid a default judgment, you should call a skilled foreclosure attorney as soon as you receive notice of a case — if not before.
A default judgment is only one of many paths that a foreclosure case can take in New York. The length of your case will depend on the actions taken by both you and your mortgage lender. New York mandates that lenders meet with homeowners at least twice to attempt to reach a settlement agreement. These settlement proceedings can involve mediation with a third-party mediator or negotiations between your attorneys.
These conferences can end up in an agreement between you and your lender to stop the foreclosure action and instead modify your mortgage loan or agree to accept a short sale or deed in lieu of foreclosure. In such situations, your case will be resolved at that point in time. If no settlement is reached, attorneys will file motions for summary judgment for the court to rule in your favor. If the court does not rule in favor of the motion and grant summary judgment, the case will then be set for a trial.
Trial dates can be set far in the future and are preceded by a lengthy and often complex discovery process. During this time, your attorney will collect evidence to challenge the foreclosure action and your lender will collect evidence to challenge any legal defenses you are asserting. You can continue to negotiate during this discovery period, especially if you learn of new evidence that can be persuasive to your lender to approve you for a mortgage modification.
If your case does proceed to trial, how long you will have to wait will depend on the schedule of the court and the current backlog in that judicial district. The length of a foreclosure case will depend on the caseload of the court to which your case is assigned.
Currently, New York courts are clogged with an overwhelming number of cases. While foreclosures were believed to have been at an all-time high after the housing crash in , reports indicate that lenders filed an estimated 41, new cases against New York homeowners last year, which is only down from about 47, in These statistics show that the courts have not had a break from the constant stream of foreclosure cases being initiated.
If you don't file an answer to the lawsuit, you'll automatically lose the case, and the court will issue the lender a default judgment permitting it to proceed with a foreclosure sale. With judicial foreclosures, a court is involved in all parts of the foreclosure.
Judges' schedules, hearings, and required paperwork all contribute to a lengthy process. In some states , judicial foreclosures can take several years to complete. In a nonjudicial foreclosure , the lender doesn't have to go through court to foreclose. In a nonjudicial foreclosure, you'll receive depending on state law :. While the servicer is working its way through the judicial or nonjudicial foreclosure process, you can remain in the property. You own your property until the title goes to a new owner, usually the foreclosing lender, as a result of a foreclosure sale.
You generally may remain in the home until then. In some states, you may stay in the property through the expiration of a post-sale redemption period if state law provides one or until some other action, such as ratification of the sale, occurs. To find out exactly when you have to leave your home during the foreclosure process in your state and get advice specific to your circumstances, talk to a local lawyer.
Also, keep in mind that you might be able to delay the sale and extend the amount of time that you can remain in your home by:. You might also have the option to reinstate the loan and stop the sale altogether.
Once your legal right to stay in the home ends, if you don't vacate the property, the new owner again, often the lender will start eviction proceedings to remove you from the property. Depending on your state's law and the circumstances of your case, the lender might have the option of initiating the eviction as part of the foreclosure action. Other times it might have to file a separate eviction action with the court.
In certain states and circumstances, the lender must send you a notice prior to commencing the eviction. Commonly called a "Notice to Quit," this notice will give you a certain amount of time, like three days, to vacate the property. Generally, it's best to leave the property prior to the expiration of this time period, before the formal eviction action is started. For specific information about foreclosure timelines, procedures, and eviction in your state and in your particular situation, talk to a local foreclosure attorney.
The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. On the flip side, as of the second quarter of , Wyoming's foreclosure process was relatively quick, averaging days.
Arkansas days , Tennessee days , Virginia days , and Mississippi days also had shorter timelines. If you live in a state where foreclosures tend to take a long time and you're about to go through one, you likely will have plenty of time to apply for—and hopefully get—an alternative to foreclosure. Though, keep in mind that the timelines discussed in this article are averages. The actual length of any individual foreclosure depends on a number of factors, and your foreclosure could be longer or shorter than the state average.
To find out how long a foreclosure is likely to take in your circumstances and get advice specific to your situation, consider talking to a local foreclosure attorney. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site.
The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service.
Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Grow Your Legal Practice. Meet the Editors.
States With Long Foreclosure Timelines. In some states, foreclosures take considerably longer than in others. Learn where and why. If you're facing a foreclosure in a state where it takes a considerable amount of time to complete the process, you'll probably have plenty of time before losing your home to: try to work out an alternative to foreclosure , like a modification , short sale, or deed in lieu of foreclosure , or live in your home without making payments before the foreclosure is completed.
Read on to learn where and why some foreclosures take longer than others. Judicial Foreclosures Usually Take Longer Than Nonjudicial Ones Depending on the state and circumstances, a foreclosure will be either judicial or nonjudicial. How Judicial Foreclosures Work Judicial foreclosures go through the state court system, which means the courts are involved in every step of the foreclosure.
How Nonjudicial Foreclosures Work In a nonjudicial foreclosure , the lender doesn't have to go through court to foreclose.
Homeowner Protection Laws Delay Foreclosures Another reason that some states have long timelines is due to federal and state foreclosure prevention efforts. Foreclosure moratoriums and mortgage forbearance programs. Foreclosure laws. California , Colorado, Minnesota, and Nevada , for instance, all passed laws to increase homeowner protections, which can slow down the process.
Foreclosures can take a long time because lenders and servicers must comply with the requirements under these laws.
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