Individuals in the state of New York may have their homes foreclosed upon if they miss a mortgage payment. A payment is considered late if it is still outstanding even a day after the due date. After 16 day, a late charge may be assessed on the payment that is still outstanding. When 30 days have passed, it may be possible for a lender to send out a pre-foreclosure notice.
This notice must be sent at least 90 days before a foreclosure proceeding can begin. Additionally, the notice must provide a list of nonprofit agencies that can provide help for someone struggling to make his or her mortgage payment. During this pre-foreclosure period, it may be possible to pay the amount due plus the late charge to have the matter dropped.
Once the 90 days has passed, the lender may formally begin the foreclosure proceeding. A court will then verify that the homeowner has been serviced before settling a settlement conference within 60 days of the homeowner receiving proper notice. If the homeowner does not successfully block action taken by the lender, the home may be sold at a public auction four months after the foreclosure is granted. Anyone is allowed to make a bid on the house, including the original homeowner and the lender.
Anyone who is going through a foreclosure may wish to speak to a bankruptcy attorney as soon as possible. A lender may not have to wait more than 90 days to initiate foreclosure proceedings after a payment has been missed. After that time passes, a homeowner may lose his or her right to take legal action in an effort to stay in his or her home. However, filing for bankruptcy may delay foreclosure until alternate payment arrangements can be negotiated.