After Settlement Agreement Or Fully Executed Loss Mitigation Agreement
Within 90 days of finalizing a settlement, the lis pendens designation on your property, which warns people that title to your property is in dispute, must be lifted.
You may be responsible for additional taxes if you reach a settlement that includes debt forgiveness. Seek advice from a tax professional about any resulting tax consequences.
Get Help Contact A Not
Housing counselors that handle foreclosure-related issues can give you advice on your options and resources at little or no cost. They may also be able to negotiate with your lender for free and help you find free legal services in your area.
Housing counseling resources for New Yorkers include:
- New Yorks Homeowner Protection Program , which connects with housing counselors and legal services at no cost. Call the HOPP hotline at 466-3456 or visit homeownerhelpny.com.
First Call Day And Mediation
If you have requested mediation, the clerk’s office will mail you a notice of when and where to come for an Informational Session and first mediation session . Please note: the location may be different from the court where the foreclosure case was filed. Learn more about foreclosure mediation.
If you are unable to come to First Call Day on the date scheduled, you must ask the court in writing to change your date.
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Searching For State Foreclosure Statutes
If you aren’t able to find your state’s foreclosure statutes by using the method described above, try an online search for your state’s name and “foreclosure statute.” But beware of this method of searching. Quite possibly, you’ll turn up only one statute at a time.
Bankruptcy and foreclosure statutes come in swarms, and you need to be able to see the entire arraycalled the statutory schemeto fully understand what you’re looking at. For example, if you’re looking for statutes dealing with notice before the foreclosure sale or the right of redemption, you might find only one of the relevant statutes and not be aware of the others.
Massachusetts Law About Mortgage Foreclosure
For information about municipal tax takings, see Massachusetts law about property taxes.
If you are unable to find the information you are looking for, or if you have a specific question, please contact our law librarians for assistance.
Homeowner Assistance Fund The Massachusetts Homeowner Assistance Fund is a federally funded housing assistance program to help homeowners who are behind on their mortgage payments due to the COVID-19 pandemic. As of September 1, 2022: For new applications to the program, Mass. HAF program assistance will be capped at $50,000 per household.
Learn about forebearance, U.S. Consumer Financial Protection Bureau.If your loan is backed by HUD/FHA, USDA, , or VA, you may request an initial COVID hardship forbearance as long as the COVID-19 National Emergency is in place. On October 13, 2022, the Secretary of HHS extended the National Public Health Emergency for 90 days until January, 2023. If your loan is backed by Fannie Mae or Freddie Mac, there is not currently a deadline for requesting aninitialforbearance. The Consumer Financial Protection Bureau provides information on how to request forebearance.
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How Can I Protect My Home From Foreclosure
The best way to protect your home from foreclosure is to pay your mortgage bill on time. If you begin to have trouble paying your bill, speak to your lender right away and ask them if they will help you. Most loan servicers do not want to end up with homes in foreclosure and they will often try to help their borrowers.
Conclusion Of The Case
Dismissal: This is when the case is canceled. Parties can agree to ask for a case to be dismissed, or a judge can order a dismissal when one party asks for it and the judge agrees that dismissal should be granted.
Judgment: After a trial, the court orders judgment for the plaintiff or judgment for the defendant. The party against whom judgment is entered can file an appeal within 21 days of entry of judgment. The parties can also agree to a judgment , which cannot be appealed.
Step 7-Post Judgment, “Period of Redemption,” and Public Sale When judgment for the plaintiff is entered, a 90-day “period of redemption” begins unless an appeal is filed. This means the homeowner has 90 days to pay the full amount of the judgment to “redeem” the property. The homeowner can stay in the home during this period. After the 90-day redemption period is over, if the homeowner has not paid the amount in the judgment to redeem the property, the lender can then take possession of the property and go forward with a public sale. The lender is allowed to bid on the property at the public sale. See 14 M.R.S. § 6323.
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Whether A Deficiency Judgment Is Allowed
When a house is sold at a foreclosure sale for less than the amount of the outstanding mortgage debt, the difference between the total debt and the foreclosure sale price is called the “deficiency.” For example, let’s say you owe $300,000 on your mortgage loan, and the home is sold at a foreclosure sale for $250,000. The deficiency is $50,000. Some states let the foreclosing party get a personal judgmentcalled a “deficiency judgment“against the borrower for this amount, while other states prohibit deficiency judgments under particular circumstances.
In the chart below, this column states whether a deficiency judgment is allowed in the most commonly-used foreclosure procedure for that particular state.
Judicial Vs Nonjudicial Foreclosures
The 120-day period before a mortgage lender starts the foreclosure is known as the loss mitigation period. This period gives the homeowner time to either catch up on payments or work out a forbearance, mortgage modification, short sale, or other payment arrangement with the lender.
After the loss mitigation period expires, state law determines what kind of foreclosure procedures a mortgage holder can use. The three major types of foreclosure processes are judicial, strict, or nonjudicial. In some states, foreclosures are always judicial. In other states, they can be either judicial or nonjudicial. Strict foreclosures are only permitted in a few states.
In both judicial and strict foreclosures, the mortgage holder must file a foreclosure action in court against the borrower. In a judicial foreclosure, the mortgage holder submits an affidavit to get a court order and force the sale of the property. In a strict foreclosure, the court will order the property to be immediately transferred to the lender instead of being sold. In states where they are permitted, strict foreclosures are commonly used when the borrower owes more than the property is worth.
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What Are Your Legal Rights In A Foreclosure
Your mortgage document and state law may provide protections
If you cannot keep up with your mortgage payments, the prospect of foreclosureand with it losing your homecan be daunting. Still, foreclosure is a rigorous legal process, and you have certain rights based on state law along with the mortgage documents you signed.
Knowing your rights can help you navigate the foreclosure process as smoothly as possible or even avoid it if your lender violates any foreclosure requirements. Here’s what you need to know.
Before A Foreclosure Action Begins In Court
You have a right to be notified at least 90 days before a foreclosure suit is filed informing you that you are in default and at risk of foreclosure. You have the right to explore loss mitigation options that may allow you to keep your home and avoid litigation. The bank or mortgage servicer is required to help you understand your loss mitigation options. If you have submitted a completed loss mitigation application, your bank or mortgage servicer must finish its review of your application before proceeding with the foreclosure suit.
RPAPL § 1303 has been amended to require plaintiffs in foreclosure actions to provide a more specific and helpful notice to borrowers regarding their rights and obligations during the foreclosure process. Specifically, the notice must indicate that homeowners have the right to remain in their homes until a foreclosure sale occurs and the obligation to maintain their property and pay applicable taxes until such time. This section is intended to help prevent properties from becoming vacant in the first place. Read the specific language required by RPAPL § 1303.
The new law addresses this issue by amending the first line of the notice to read “As of ____ your home loan is ____ days and ___ dollars in default. Similarly, it adds language to RPAPL § 1304 which highlights the borrowers ongoing rights and responsibilities throughout the foreclosure process. Read the new pre-foreclosure notice language.
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Whether You Get The Right To Reinstate Before The Foreclosure Sale
A “reinstatement” occurs when the borrower brings the delinquent loan current in one payment by paying the overdue payments, plus fees and expenses incurred due to the default. Once the loan is reinstated, the borrower resumes making regular payments on the debt. In a foreclosure, state law sometimes gives a borrower the right to reinstate up until a specific deadline. You should be aware that, even if state law doesn’t give you the right to reinstate, your mortgage or deed of trust might. Or your lender might agree to let you reinstate the loan.
In the chart below, this column indicates whether state law provides a reinstatement right during the most commonly-used foreclosure procedure for that particular state.
Foreclosure Procedures By State
The foreclosure process varies somewhat from state to state, and depends primarily on whether the state uses mortgages or deeds of trust for the purchase of real property. Generally, states that use mortgages conduct judicial foreclosures, using the court system to execute the foreclosure states that use deeds of trust conduct non-judicial foreclosures, using an out-of-court procedure defined by state law.
To foreclose in accordance with the judicial procedure, a lender must prove in court that the mortgagor is in default. Once the lender has exhausted its attempts to resolve the default with the homeowner, the next step is to contact an attorney to pursue court action. The attorney contacts the mortgagor to try to resolve the default. If the mortgagor is unable to pay off the default, the attorney files a lawsuit against the mortgagor to establish the default amount and the right to have the collateral sold and the sale proceeds applied towards the outstanding loan. The purpose of the action is to provide evidence of a default and get the courts approval to initiate foreclosure. In connection with the lawsuit, a lis pendens is filed with the county clerk or other public property records repository. The lis pendens gives notice to the public that a pending action has been filed against the borrower in default to collect the defaulted debt, including having the collateral sold.
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What Can I Learn About Foreclosure From My State’s Statutes
Each state’s foreclosure laws are different. By reviewing your state’s foreclosure law, you can find out:
- how much notice you’re entitled to before your home is sold in a foreclosure sale
- how much notice you’re entitled to before you’re evicted after a foreclosure sale
- how much time you have to reinstate your loan or redeem your property after a default
- whether your lender can sue you for a deficiency judgment and if so, under what conditions, and
- what special protections you are entitled to if you have a high-cost mortgage .
Residential Foreclosure Actions Consumer Bill Of Rights
This Residential Foreclosure Actions Consumer Bill of Rights provides guidance to homeowners facing foreclosure in New York. A foreclosure is a lawsuit, and homeowners should seek assistance from an attorney or housing counselor in exploring potential legal defenses to the suit. Homeowners should also know their general rights and obligations highlighted below.
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Right To Reinstate Before The Foreclosure Sale
Even if youâve already received a notice of default, state law may still give you the right to reinstate your mortgage before the foreclosure sale. You may only be able to exercise this right up until a specific deadline. You would need to make up all missed payments and pay certain expenses related to the foreclosure, like attorneyâs fees and court fees. A successful reinstatement would mean that youâd return to the original payment plan. Even if your state law doesn’t provide you with the right to reinstate, your mortgage or deed of trust might.
Right To A Breach Letter
Mortgage contracts typically have a clause that obligates lenders to send a written notice called a “breach letter” to tell you when you are in default. The breach letter must include:
- Details about the default and its causes
- What you need to do to curethe default and reinstate the loan
- The date by which you must cure the default
- Notice that failure to cure the default on time will lead to the sale of the property
To cure the default and avoid foreclosure, you must pay the entire past-due amount by the date shown in the breach letter, along with any back interest, late fees, and penalties. If you do notand you have not worked out some other optionforeclosure proceedings will likely begin. In general, you must be behind on payments for at least 120 days before a foreclosure can start, so your lender will likely send a breach letter close to the 90th day of the delinquency.
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How To Browse Foreclosure Statutes
Here’s an example of the general steps you would use to find the foreclosure statutes for Vermont, which are located in Title 12, Chapter 172, Sections 4931 through 4954. Say you’re specifically interested in reading Vt. Stat. Ann. tit. 12, § 4941.
1. Locate Vermont’s statutes online by running a search for “Vermont statutes.” You’ll find in your list of results a link to “Vermont Statutes Online Vermont Legislature” on the Vermont General Assembly’s website. Clicking on that link will take you to a page listing Vermont’s statutes. Then look for the relevant title, chapter, and section that you want to review.
2. Find and click on the relevant title. In this example, it’s “Title 12.” This opens up a list of chapters.
3. Scroll down until you reach the chapter that contains §§ 49314954 .
4. Click on “Chapter 172.” Then, look for § 4941.
You’re good to go!
Most states arrange their statutes in a similar manner: by title, article, chapter, and section. Some states arrange their statutes in a slightly different manner. For example, if you were looking for Section 2323.07 of the Ohio Revised Code, you would use the first two numbers to find the correct title . After clicking on Title 23, then click on the link to Chapter 2329, and look for the statute numbered 2323.07.
Learn More About How to Do Your Own Legal Research
Legal research is its own subject. If you want to dig into it more in depth, see Nolo’s article on Laws and Legal Research.
How To Find Your State’s Foreclosure Laws
The two ways to find your state’s statutes on foreclosure are by:
- browsing through the various subject headings of the statutes to locate the citation you’re looking for, or
- searching online for the keywords you’re interested in.
Finding the Citations to Your State’s Foreclosure Statutes
Nolo’s book The Foreclosure Survival Guide provides the citations for each state’s foreclosure statutes. You can also generally find the citations online by searching for ” foreclosure laws” or similar language.
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New Foreclosure Laws In Florida May Restrict Access To Courts
The global recession has had an impact on every one of us. While the economy is showing small signs of improvement, problems still remain. When the economy collapsed, it hit the housing market especially hard. Florida was one of the states that saw foreclosure rates skyrocket. Homeowners statewide were hit with mortgage payments that they could not afford, and home values dropped substantially.
The foreclosure process in Florida provided some protection to those who were struggling to make ends meet. Banks and lenders had to follow specific requirements before a foreclosure would be final. Florida foreclosures must proceed through the courts, but a new law has been proposed which would drastically impact struggling homeowners.
Florida legislators have introduced legislation that would completely remove the foreclosure process from the courts. Under the new law, banks or mortgage lenders would need to notify the homeowner of the pending foreclosure. The foreclosure would then proceed, and could be finished in a range from 90 days to one year, depending upon the circumstances.
Legislators have introduced several efforts throughout the years aimed at removing foreclosures from the courts. Due to the high number of foreclosures within the state, it can take years before the bank or lender will have their property returned. They argue that this long wait restricts their ability to sell the property to another subsequent buyer.
Sale Of Foreclosed Property
Most states require mortgagees to sell foreclosed property at public auction. If the property does not sell at auction, the mortgagee keeps it, and later resells it in a normal real estate sale. State laws vary regarding what happens if foreclosed property sells for less than the mortgagor’s unpaid debt. In some states, mortgagors are liable for the difference. In others, they are not. In every state, if the property sells for more than the mortgagor’s unpaid debt, the mortgagor gets the difference.
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