It is crucial for anyone who is facing foreclosure to understand the basic process, defences and ways to avoid the consequences of foreclosure.
Foreclosure and the Procedure
Foreclosure happens when a borrower fails to make payments on his/her mortgage. The lender can enforce legal action and repossess the property through foreclosure. The lender must go through the correct process of foreclosure and the Long Island foreclosure attorney can aggressively delay the process and use that time to help you look for a better solution.
The foreclosure process is different from one state to another. There are two types of foreclosure: judicial and non-judicial. Judicial foreclosure requires the lender to go through the court system to take back the ownership of the property. Non-judicial foreclosure process means that the lender has to follow through the state specific process, but it does not necessarily need court supervision.
Long Island foreclosure attorney follows the judicial process. In a judicial foreclosure, the lender files a lawsuit in court as the plaintiff. You will receive a copy of the complaint and you will be given a specific number of days to respond. If you fail to respond during the time given, then the court will favour the plaintiff and will set a sale date. The foreclosing party can publish a sale on the local newspaper where it will be advertised for a few weeks. The public, including the former owner of the house, may bid on the property and the highest bidder will be the owner.
After the Foreclosure Sale
You still own your house up to the foreclosure sale. This allows you to stay there until the new owner is ready to use the property. You can even stay in the house until the redemption period expires or after the ratification of the sale. However, be sure to leave the property by then because if not, the new owner may take legal steps to evict you.
Sometimes, the amount recovered from the sale of the property is not enough to cover the full debt of the borrower. The difference between the debt and the sales price is referred to as deficiency. The lender can recover the deficiency from the debtor through personal judgement. Your attorney can help advise you on how to avoid this by drafting an agreement with the lender not to come after you even if there is any deficiency in sale. Even if deficiency lawsuits are quite rare because it can be expensive to file it in court, lenders can still pursue a suitcase if you have substantial assets that can cover the deficiency.
Consulting a foreclosure attorney
It is always a good idea to seek the legal advice of a Long Island foreclosure attorney even if you do not plan to contest the foreclosure. This can provide you with valuable insight on the procedures and the debt issues that you might be facing.
There is also an entire legal team that specializes in helping people delay their foreclosure. Some of the cases can even take several years. You can take advantage of this delay by contacting a Long Island foreclosure attorney.
What to expect from foreclosure
Consulting a Long Island foreclosure attorney is even more important if you wish to keep your property. Make sure to contact a good attorney and have him/her explain all of your available options and if you have enough grounds to contest the foreclosure. Remember that in any foreclosure procedure, you will still be entitled to receive some sort of notice. Make sure that you use this time properly to consult legal aid to help you decide on the proper action.