Foreclosure can be a life-changing event and usually does not come as a surprise to homeowners. Well before foreclosure happens, homeowners will have missed several mortgage payments. Life can present unpredictable circumstances such as unexpected medical bills or adjustable-rate mortgage increases that contribute to missed payments.
Foreclosure is sometimes a long process. New York is a judicial foreclosure state and has one of the longest foreclosure timeframes. If you fall behind, it will take the lender at least a few months to start the foreclosure process. If you start planning early, you will have time to plan, negotiate, and evaluate options. The earlier that you start, the better.
There are many options for trying to keep the house if you have received a foreclosure notice. If you have only missed a few payments, your lender will probably work with you to become current over time or to add the missed payments to the end of the loan. However, if you have missed more than four payments, you will have fewer options
Plan ahead and strategize. Mortgage payments that you make will not be useful if you lose your house in foreclosure. If you make payments and the home is foreclosed on, those payments could have been used for relocation costs unless you can find a way to become current on your mortgage payments or unless you file and complete a Chapter 13 bankruptcy. On the other hand, if you stopped paying your mortgage when you first realized that you would not be able to meet the mortgage payments, you would have more funds for relocation purposes.
Don’t wait for the lender or loan servicer to contact you. As soon as you realize that making your mortgage payments will be difficult, you should analyze the situation and determine the best course of action. A foreclosure attorney can assist you in the planning process.
The Law Office of Weinstein, Chase, Messinger & Peters serves Brooklyn and the greater New York area with effective legal services regarding personal injury, medical malpractice, real estate and estate planning. If you need our help, contact Weinstein Chase, Messinger & Peters for you free initial consultation.