How the foreclosure process works in New York State:
Day 1-15: A mortgage payment is missed.
Day 16-30: A late charge is assessed on payment. The loan servicer (the company that processes your mortgage payments) will send you a notice or otherwise attempt to make contact with you.
Day 45-60: The loan servicer will send a “demand” or “breach” letter pointing out that terms of the mortgage have been violated. You will be given 30 days to pay the delinquent amount and the late charge.
Day 90+: The servicer will begin the process of bringing a legal action for foreclosure. This may include referring the loan to its foreclosure department, hiring an attorney to initiate foreclosure proceedings, recording a formal notice of foreclosure or “lis pendens” with the court and serving you with notice of the action through a “summons and complaint.” These proceedings can take 7-9 months.
You will be notified of the foreclosure proceedings and asked to appear in court to respond. If you do not appear in court, the court can rule against you and schedule a foreclosure sale. If you do appear, the court will rule on whether a foreclosure can occur based on the evidence presented. If the court rules against the borrower (you) a foreclosure sale is scheduled.
The sale usually occurs at least 4 months after the court ruling. A notice of sale is published in a general circulation newspaper once a week for at least 4 weeks prior to the sale.
The foreclosure process in New York currently takes about 445 days (15 months) from the date of the first missed payment to the sale of the home.
*Foreclosure Defense will vary options will vary depending on the state the property is located in