The word “foreclosure” brings with it so many terrifying connotations. After all, very few things are quite as devastating as losing the roof over your head to your creditors.
On the other hand, apart from the gist that the foreclosure process either ends in the retention or loss of a property (often a home), people actually know very little about the process and are thus highly dependent on a Long Island foreclosure lawyer when it comes to the specifics.
Of course, in order to have a better chance at retaining your house or remaining on a foreclosed properties premises for a longer amount of time, one needs to understand the process and the precise role that a Long Island foreclosure lawyer plays in all of it.
Being familiar with the foreclosure steps can help you determine the best time to hire or consult with a Long Island foreclosure lawyer as well as the sort of steps to take to prevent the next level from unfolding:
1.) The process begins when your loan servicer or debtor (e.g., bank) will contact you to inquire about some payments you have defaulted on recently;
2.) If you do not answer your servicer’s inquiries or if you cannot agree upon an alternative mode of action, then your lender will serve you with a notice of default. This is a legal document that enables your lender to demand payment of the mortgage or loan.
3.) In most cases, the lender will then hire a lawyer to file a complaint for foreclosure in court.
4.) Once the complaint has been filed, the court will serve you with the papers and will provide you with sufficient time to come up with a response. Generally, the time frame for responding to the foreclosure complaint is about 30 days or a month. Many people hire a Long Island foreclosure lawyer at this point to help them come up with the best preventive measure in order to avoid the steps that follow.
5.) Depending on your answer, your lender’s lawyer will then file for a default judgment with the presiding court. Your foreclosure lawyer should be able to help you either delay the judgment or help you buy time to come up with the funds necessary to save the property.
6.) If the court grants the motion for a default judgment, the presiding sheriff is thus issued an order of sale.
7.) The presiding sheriff will then order the value of your home or property to be appraised by a reliable third-party authority.
8.) Once the appraisal value of the home is determined, the sheriff will advertise a public auction of the property in question through the proper channels (e.g., local newspapers, etc.). The defendant will also be properly notified of the said event.
9.) At this point, your foreclosure lawyer should still be able to help you claim your right to remain in the home or on the property up until the point of sale (or the foreclosure process, depending on the prevailing state law). S/he should also be able to help you contest any premature motions carried out by your servicer (e.g., changing the locks of the house to bar your access prior to the completion of the foreclosure process.)
10.) Once your house is sold, the judge in charge of your case orders a new deed of sale for the new owner.
11.) The new owner is now in control of the property, and if the defaulting party is still occupying the place at this point, the new owner can get the sheriff to evict them.
12.) If there is any deficiency between the sale price at the time of the foreclosure and your outstanding debt on the mortgage, then the lender can appeal for a deficiency judgment against the defaulting party to reclaim the difference.