Notice of an imminent New York foreclosure is frightening and overwhelming. Many property owners, particularly small business owners and homeowners, feel dismayed and helpless upon receiving an indication of foreclosure. However, fighting foreclosure is possible, and you shouldn’t feel like a victim as a New York foreclosure unfolds.
In an earlier blog post, we discussed several ways you can fight foreclosure with the assistance of a foreclosure lawyer. A very important way to delay or postpone a foreclosure and gain precious time to prepare for leaving your property is through negotiation with the lender. Keep reading to learn more about these negotiations and how a New York foreclosure lawyer can help with your case.
#1: Missed Mortgage Payment
Borrowers in New York miss mortgage payments every month. Maybe you lost your job or had a major expense that month. Perhaps you were just running low on cash and prioritized your credit card bill. You may have forgotten the mortgage payment was due. In any event, this is the first time you should consider negotiation with your mortgage lender.
After a missed mortgage payment in New York, the bank or other lenders likely has a grace period for payment. Your mortgage payment won’t be considered later or past due until the grace period expires. In most instances, the grace period is between five and 10 days, and the exact timeframe can be found on your mortgage documents.
If you know a mortgage payment will go unpaid for 15, 30, or even 45 days, you should consider starting negotiation with your lender. After the grace period, your lender will assess a late fee on your payment, which makes it even harder to catch up on your payments. Your loan isn’t considered current unless the late payment is also timely. These costs will continue to add up without intervention and the assistance of a New York lawyer.
#2: Default on Your Loan
The second major milestone in a non-current or past-due mortgage is a default. The terms of most mortgages state that a borrower defaults on a loan when a monthly installment is 90 days past due. At this time, the bank will make note that your mortgage is in default and send you a letter to that effect. Your lender can now initiate foreclosure proceedings; although, there is no mandatory requirement that foreclosure begins immediately after the 90-day deadline.
Upon receiving a notice of default, a foreclosure lawyer can help you review the terms of your loan and provide possible compromise or postponement of foreclosure proceedings. If you approach a lender with compromises and a plan for full-repayment before a foreclosure is initiated, you have more leverage and likelihood of success. A bank or other lender ideally wants to recover the full amount of a mortgage plus interest, which means there is an incentive to work with you on timing and restructuring a mortgage to make that happen.
#3: Notice of Foreclosure
Your last warning before a foreclosure is a notice that the bank will initiate this legal proceeding. Postponing a foreclosure through negotiation becomes more difficult once the bank has filed for the start of a foreclosure, but it isn’t impossible. You can still offer an alternative to your lender that would bring you current on a Goshen mortgage. This may include a new payment plan or refinancing the mortgage.
If your circumstances or reason for repayment is temporary, it could also mean simply requesting more time for repayment. As discussed earlier, a bank is incentivized to recover the full amount of a mortgage, including interest. When you work with a foreclosure lawyer to propose a possible plan to sell the property at full value or request more time before foreclosure, there is a reason for the bank to be agreeable.
Hire a Lawyer to Fight Foreclosure
There is no guarantee that negotiation with your bank will prevent a New York foreclosure, as the authority to approve changes to your mortgage is with your bank, but your chances of success are improved when you have knowledgeable support. This may include the assistance and representation of a New York lawyer. An experienced foreclosure lawyer at Simon Haysom, LLC can give you confidence in your postponement argument and provide confidence when negotiating with a lender. Contact us at (845) 294-3596.
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