More ...


Applications & Filings

Application Fees & Assessments

Pharmacy Benefit Managers

Banks and Trusts

Insurance Agents & Brokers

Insurance provider

Mortgage Companies

Money Transmitters

Virtual Currency Businesses

More ...


Industry Guidance

Cybersecurity Resource Center

Climate Change

Diversity, Equity and Inclusion

Innovation.

Health Equity.

Enforcement & Discipline.

Circular Letters.

Industry Letters.

Regulatory & Legislative Activities.


Reports & Publications.

Newsroom.

Statements & Comment Letters.

Examinations & Exam Reports.

DFS Annual Reports.

Other Reports.

Interagency MOUs.

Public Hearings.

Weekly Bulletins.


About Us.

Contact Us.

File a Problem or Appeal.

Careers With DFS.

Newsroom.

Procurement.

Help for Homeowners

- Foreclosure Assistance - Help for Homeowners Facing Foreclosure.
- Find a Housing Counselor.
- If You Fall Behind.
- Know Your Options.
- Know Your Rights in Foreclosure.
- Settlement Conferences

- A Renter's Rights in Foreclosure.
- Rent-To-Own and Installment Contracts.
- Renter's Insurance

- Basic Coverage and Adding Coverage.
- Force-Placed Insurance.
- Cancellations and Nonrenewals.
- Choosing a Policy.
- Just How Much Insurance Do You Need?
- Problems Obtaining Insurance.
- Flood Insurance.
- Understanding What Affects the Cost.
- Looking for Insurance.
- Managing and Mitigating Losses

Residential Foreclosure Actions Consumer Bill of Rights

This Residential Foreclosure Actions Consumer Bill of Rights supplies guidance to homeowners dealing with foreclosure in New York. A foreclosure is a suit, and property owners must seek support from a lawyer or housing therapist in exploring prospective legal defenses to the match. Homeowners must also understand their basic rights and responsibilities highlighted below.

Throughout the Foreclosure Process

You can remain in your home and the duty to maintain your residential or commercial property unless and until a court orders you to abandon. If you abandon your home, the complainant (bank or mortgage servicer) might be able to foreclose on your residential or commercial property through an expedited process in court. To avoid this result, stay in your home and thoroughly review and react to files you receive from the plaintiff or the court in your foreclosure case. A failure to react or appear in court when needed to do so might make it simpler for the complainant to reveal that your residential or commercial property is vacant and abandoned, which might put you at threat of a sped up foreclosure.

You have a right to be represented by an attorney and may be qualified for complimentary legal or housing counseling services.

You have a right to be devoid of harassment or foreclosure frauds. Strongly consider speaking with a lawyer or housing counselor, if readily available, before signing any papers. If you are the target of harassment or scams, contact DFS by calling our Consumer Hotline at (800) 342-3736.

You have a right to avoid foreclosure if you repay your loan completely at any time prior to the sale of your home, or if you negotiate a settlement with the plaintiff.

Before a Foreclosure Action Begins in Court

You have a right to be alerted at least 90 days before a foreclosure suit is filed notifying you that you remain in default and at risk of foreclosure. You deserve to check out "loss mitigation" options that might permit you to keep your home and prevent litigation. The bank or mortgage servicer is needed to help you comprehend your loss mitigation options. If you have actually submitted a completed loss mitigation application, your bank or mortgage servicer should complete its evaluation of your application before continuing with the foreclosure match.

RPAPL § 1303 has been modified to need plaintiffs in foreclosure actions to offer a more particular and useful notification to customers regarding their rights and obligations throughout the foreclosure procedure. Specifically, the notification must suggest that property owners have the right to remain in their homes till a foreclosure sale takes place and the responsibility to maintain their residential or commercial property and pay applicable taxes till such time. This area is meant to assist avoid residential or commercial properties from ending up being vacant in the first location. Read the specific language needed by RPAPL § 1303.

RPAPL § 1304 needs mortgage lenders to offer debtors a minimum of ninety days' notification before starting a foreclosure action. Currently, this Pre-Foreclosure Notice (" PFN") need to consist of the following language: "As of ___, your mortgage is ___ days in default ... You can cure this default by making the payment of ___ dollars by ___." Unfortunately, debtors frequently interpreted this provision to suggest that as long as the borrower supplied the stated amount by the date defined, the loan would be reinstated. Quite frequently, the "cure date" defined in the PFN is the earliest date on which the creditor can start a foreclosure action, which is 90 days after sending out the PFN. When the debtor waits a full 90 days to supply the amount specified, any missed out on payments and associated interest and charges from the intervening months would be contributed to the deficiency. In such a case, the debtor who sends the amount stated in the PFN would remain in default due to intervening accruals, despite his or her good-faith efforts to deal with the default defined in the PFN.

The new law addresses this concern by amending the first line of the notification to read "As of ____ your mortgage is ____ days and ___ dollars in default." Similarly, it adds language to RPAPL § 1304 which highlights the customer's ongoing rights and duties throughout the foreclosure procedure. Read the new pre-foreclosure notice language.

Once a Foreclosure Action Begins

You can get a copy of the legal papers in the foreclosure suit when it starts. This is referred to as "service" of the Summons and Complaint. You need to react to the Summons and Complaint with an "Answer" within 20 days after you have actually been personally served, and within thirty days if served on you by other ways. The Answer is your chance to state your defenses.

You should talk to a lawyer or housing counselor for aid in this procedure.

You have an obligation to appear at all scheduled court looks. If you fail to appear, you risk losing essential rights, which could result in the loss of the case and your home.

You have a right to demand court permission to continue without paying court expenses.

At a Compulsory Settlement Conference

You have a right to a description of the nature of the foreclosure action versus you.

Both celebrations have a responsibility to bring all required files to the settlement conference. For a general list of required files, check out the Mandatory Settlement Conference information page.

Both celebrations must negotiate in "great faith", which means honestly and fairly. If you stop working to do so, you might lose the chance to pursue a court-supervised settlement. If the bank or mortgage servicer stops working to do so, the court may enforce similarly substantial charges. Negotiating in great faith does not require either celebration to settle.

If you previously failed to submit a Response, you will be offered an extra 30 days to do so at the settlement conference.

After Settlement Agreement or Fully Executed Loss Mitigation Agreement

Within 90 days of settling a settlement, the lis pendens designation on your residential or commercial property, which alerts people that title to your residential or commercial property is in conflict, must be lifted.

You might be accountable for extra taxes if you reach a settlement that consists of debt forgiveness. Consult from a tax professional about any resulting tax consequences.

After Judgment of Foreclosure and Sale

Upon a judgment of foreclosure and sale, the new owner can seek to evict you from the residential or commercial property.

If the home is resold for more than what you owe, you have a right to submit an application with the court for the surplus funds, subject to specific due dates. It is necessary to seek aid from a legal company if you think you are owed a surplus.

If the home is sold for less than what you owe, the lender might file an application for a judgment against you for the difference, called a shortage judgment. You may deserve to object to the quantity of any deficiency judgment, including interest and charges.

Get Help! Contact a Not-for-Profit Housing Counselor

Housing therapists that deal with foreclosure-related concerns can give you guidance on your options and resources at little or no charge. They may likewise be able to negotiate with your lending institution totally free and help you find totally free legal services in your area.

Housing counseling resources for New Yorkers include:

- New york city's Homeowner Protection Program (HOPP), which connects with housing counselors and legal services at no cost. Call the HOPP hotline at (855) 466-3456 or visit homeownerhelpny.com.
- You can discover a list of authorized non-profit housing therapists by county here, on the DFS site.
- 24-Hour assistance is readily available toll-free on the HOPE NOW hotline at 888-995-HOPE (888-995-4673). HOPE NOW is an alliance of HUD approved counseling agents, servicers, and investors that provide free help.
- If you reside in New york city City, you can likewise call 311.

If you remain in a foreclosure lawsuit, you ought to seek advice from an attorney.

Seek Legal Assistance

Contact an attorney and evaluate your mortgage files. Make sure your loan is not in violation of any laws. If you do not have a lawyer, the New York State Bar Association might have the ability to refer you to a proper lawyer for your situation.

If you can not pay for a private attorney, resources totally free or low-cost legal support include:

- New York's Homeowner Protection Program (HOPP), which links with housing therapists and legal services at no charge. Call the HOPP hotline at (855) 466-3456 or go to homeownerhelpny.com.
- The New York State Bar Association's Lawyer Referral and Information Service.
- The Legal Service Corporation website.
LawHelp.org, an online directory site of complimentary legal company in New york city.