Behind on your mortgage payments and facing foreclosure is a scary situation for homeowners in New York. In fact, it’s a situation that causes anxiety, uncertainty, and can throw a household into turmoil. Most New Yorkers would take drastic steps to stop a foreclosure, if only they knew the available options. Usually, this is when a Goshen NY foreclosure lawyer can help.

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Whereas most people are unaware of the possible ways and reasons to prevent a foreclosure, a Goshen NY foreclosure lawyer is trained to fight foreclosure from every angle. This includes arguing for postponement of a foreclosure sale. What does it mean to postpone a foreclosure sale and when is this an option in New York?

First, What Is a New York Foreclosure Sale?

When most people use the word foreclosure, they are actually picturing part of the process called a foreclosure sale. Here’s how it works. If a borrower falls behind on mortgage payments, then the bank has within the loan documents lien rights. This allows the bank or another lender to foreclose on the property. However, when the bank forecloses, it doesn’t just keep the property.

In some instances, the bank is only entitled to part of the value of the property, and in other instances, the bank has no interest in holding real property when it could have cash. Instead, the bank auctions the foreclosed property at a foreclosure sale. According to revisions in federal law, a foreclosure sale can’t happen immediately.

The bank must provide the borrower a 120-day grace period after a missed payment to bring the mortgage current before taking any steps towards a foreclosure sale. If you know 120 days isn’t enough time to make the mortgage payments, this is the ideal time to contact a Goshen NY foreclosure lawyer.

Second, Can a New York Foreclosure Sale Be Delayed?

After the federally mandated 120-day waiting period, the foreclosure process is mostly governed by state law. For individuals dealing with foreclosure in Goshen, this means New York State law is applicable to the process. Under New York law, there are several ways to postpone a foreclosure sale or foreclosure auction.

According to the foreclosure laws in New York, every lender must follow the judicial foreclosure process before proceeding to an auction or foreclosure sale. Throughout the process, a homeowner has the opportunity to delay, fight, and even prevent the auction from taking place.

If you have the financial assets available or can acquire the funds necessary, a Goshen NY foreclosure lawyer can help you redeem the loan. To redeem a loan it isn’t enough to bring it current, the borrower must pay off the mortgage completely. Once paid in full the foreclosure sale is postponed and eventually canceled after the funds are cleared and confirmed.

Need a different option to stall or postpone a foreclosure sale? In some instance, a Goshen NY foreclosure lawyer also practices bankruptcy and can help you file under Chapter 7. Filing for bankruptcy puts all your assets, including real property, into an automatic stay, effectively postponing the foreclosure sale.

Of course, this is only a good option for individuals already contemplating or requiring bankruptcy measures. For individuals that can meet all of their other payment obligations, Chapter 7 bankruptcy is a drastic, and ultimately ineffective, way to stall a foreclosure sale.

Third, Can You Postpone a Foreclosure Sale with a Short Sale?

A Goshen NY foreclosure lawyer can negotiate with the bank to accept a short sale of foreclosure property. However, in this situation, the decision to postpone a foreclosure sale or not is left to the bank, and typically a bank requires more than the possibility of a short sale to change their foreclosure sale timeline. Rather, a homeowner needs an offer from a qualified buyer to get the bank’s attention. Even then, it’s incredibly helpful if a knowledgeable New York lawyer handles communication with the bank.

If you are facing a foreclosure sale and want to discuss your options for postponement with a New York foreclosure lawyer, contact Simon Haysom LLC Attorneys at Law at 845-294-3596. Our Goshen, NY office is prepared to assist with all of your foreclosure and bankruptcy needs.