How Long Does Foreclosure Take In New York?
October 15, 2008
New York foreclosures tend to take anywhere between 7 to 18 months. The time it takes is subject to factors such as how quickly the courts work and how many people must be served with foreclosure papers. The foreclosure begins with the lender filing a lis pendens on the property and filing a lawsuit against the borrower and anyone with a possession interest in the property.
Foreclosures are handled differently from state to state, so it’s important to know exactly how they are handled where you live. In many states, more and more properties are held by deeds of trust instead of mortgages. In these trust states, foreclosures are handled at the county level, which means that the time it takes to foreclose on a property is considerably less than in mortgage states. However, most mortgages in New York are handled by mortgages and foreclosures require judicial action before a property can be sold at auction. The non-judicial methods, which are available in New York, are rarely used because of the higher possibility for title disputes.
In New York, after a lis pendens has been filed, it usually takes anywhere between 7 and 18 months for a property to be ready for auction. The reason for this period of time has to do with the courts and the number of parties involved in the foreclosure. Everyone involved in the foreclosure, which includes the mortgage holder, lenders, the homeowner, and any possible tenants of the homeowner, all require notification by the courts.
When a homeowner receives notice of a pending foreclosure, the worst thing that person can do is nothing. It is important for a borrower to examine his or her options. Some lenders will be willing to restructure a mortgage instead of proceeding with a foreclosure. Other options, such as Chapter 13 bankruptcy may also be able to stop foreclosure proceedings.
Before filing for bankruptcy, however, you should talk with an experienced foreclosure defense lawyer to review your options. Often, a mortgage bank has violated various state and federal laws; these violations can be used to defend the foreclosure and get you help without filing for bankruptcy.
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