With the COVID-19 vaccines on the horizon, millions of Americans are in danger of homelessness. Though Governor Cuomo issued Executive Order 202.81, extending the suspension of eviction and foreclosure proceedings to January 31, New Yorkers are desperately looking for ways to save their houses from foreclosure auctions. If you are at risk of losing your home, this article explains how to stop a foreclosure auction immediately, with descriptions and additional links for several relief options available to you. Consider receiving a free consultation from a foreclosure defense attorney.
How does a foreclosure auction work?
Since a mortgage loan uses your home as collateral, nonpayment of your mortgage will lead to the mortgage company repossessing your home as payment for the loan. In New York, the lender has to file a lawsuit against you for the foreclosure proceedings to begin. Additionally, lenders in the State of New York are required to send a 90-day pre-foreclosure notice before beginning the foreclosure process. Before filing, the lender is federally required to wait until you are 120 days delinquent for payments. Once this waiting period is done, the lender can proceed to court and request repossession of your home.
Lenders request repossession to mitigate losses but usually do not have a use for residential properties. Accordingly, lenders publicly auction these homes to offset the defaults. If the lender wins the lawsuit, the court orders the public auction. The foreclosure process could last for years, and the eviction process does not begin until the foreclosure sale date passes.
Can a foreclosure auction be stopped?
Under New York State law, you can stop a foreclosure sale date using many methods. Because state law requires an extensive pre-foreclosure process and an equally burdensome foreclosure process, New Yorkers can delay proceedings or stop foreclosure auctions of their homes.
If you are wondering how to stop a foreclosure sale date for your home, you should heavily consider receiving a free consultation from a foreclosure defense attorney. The foreclosure process is a complicated maze, requiring persistence and patience. A foreclosure attorney can help you maneuver through the process — giving you the best chances for keeping your home.
How to Save My House From a Foreclosure Auction?
There are several ways to save your house from foreclosure. Below are eight ways that can help you stop a foreclosure auction. Please read through these options carefully. If you are unsure which option is best for your home, please contact Law Office of Yuriy Moshes, P.C. for a free consultation, and we can help you navigate the complicated foreclosure process. Together, we can work quickly and save your house from the mortgage company.
- Filing for bankruptcy
Though filing for bankruptcy will momentarily help you stop a foreclosure auction of your home, it should be the last resort option because the bankruptcy will remain on your credit report for a decade.
- Applying for loan modification
It is possible for the lender to agree to several loan modifications to make your mortgage payments easier. Examples of loan modifications include:
- Lowering monthly costs and increasing the years on your term
- Lowering interest rates
- Restructuring your mortgage to include the delinquent amount
- Delaying the principal so it may result in a balloon payment that is due on a later date
- Forgiving a portion of the delinquent conditionally or even unconditionally
The federal Making Home Affordable program has more information on loan modifications.
- Requesting a deed-in-lieu foreclosure
You can surrender your home to the lender for the mortgage company to sell so you can avoid a foreclosure on your credit report.
- Attempting to make a short sale
You receive the lender’s approval to let you sell your home for less than the delinquent amount. Lender receives the proceeds and forgives the remaining amount with no deficiency judgment.
- Paying off mortgage defaults
Again, agreeing to a payment plan to pay off the delinquent amount will stop the foreclosure sale. Be sure to get a written agreement of your mortgage company’s approval to fully ensure your foreclosure stopped.
- Negotiating with the lender
Most of these suggestions require diligent negotiation with your mortgage company. A foreclosure attorney can be essential to receive ideal results from an overwhelming negotiation process. Find out how to stop a foreclosure sale by contacting us for a free consultation.
- Buying at the auction
Unfortunately, New York State law does not allow an individual to redeem their home at the foreclosure auction.
- Sue your lender
If you would like to sue your lender to stop the foreclosure sale, please contact us for a free consultation. The NYC Bar Legal Referral Service also gives a detailed step-by-step of the foreclosure judicial process on its website.
Additional Ways to Stop a Foreclosure Auction Immediately:
- Partial claims for FHA/HUD loans
- Emergency mortgage assistance programs
- Refinancing programs
Stopping the Foreclosure Sale – Which option(s) are best for you?
The CARES Act allowed for a temporary moratorium on federally backed mortgage payments and eviction proceedings until August 31, 2020. When that provision expired, President Trump issued Executive Order 13945, requesting that foreclosure and eviction proceedings remain at an absolute minimum. For the State of New York, Governor Cuomo’s Executive Order 202.81 extended the suspension of eviction and foreclosure proceedings to January 31, 2021.
However, for these moratoriums to apply, you must present a sworn declaration that you were financially impacted by the pandemic. You must also present a notice of default and a list of state-certified housing assistance agencies and state-funded legal services available in the area the property resides. This notice of default does not go towards the required 90-day pre-foreclosure notice from the lender before it starts the foreclosure process.
Because of the financial hardships caused by COVID-19, about 12% of New Yorkers are delinquent on their mortgage payments — equivalent to almost 2 million people facing foreclosure. Currently, New York has the second-highest rate for mortgage defaults in the United State. With such a high number of individuals on the brink of homelessness, fighting a foreclosure is going to require swift and direct action. If you need guidance for choosing the option best to stop the foreclosure sale of your home, please do not hesitate to contact us for a free consultation.
Get a Free Consultation from an Attorney on How to Stop a Foreclosure Auction
If you are wondering how to save your house from a foreclosure auction, you can receive a free consultation from a number of foreclosure attorneys. If you are trying to stop a foreclosure auction of your home, time is of the essence, and the matter of utmost importance is returning your home back into your possession. Fill out a free consultation form, and we will hastily help you get your home back and protect you from paying more than necessary to reclaim your property.
A: The foreclosure process lasts for years, the auctioning process could last for months, and the eviction process does not begin until the foreclosure sale date passes.
A: There are several ways a lawyer can stop a foreclosure auction. A lawyer can help you:
Negotiate a payment plan
Negotiate a loan modification
Request a deed-in-lieu
Make a short sale
Sue your lender
A: The court orders a public auction for the foreclosed home if the lender wins the foreclosure lawsuit.
The lender publicly auctions the home to mitigate costs from a mortgage default.
The highest bidder wins the auction.
The highest bidder receives the title of the home.
A: The auctioning process could take months before the sale is made. The foreclosure sale date must pass before the eviction process begins.
A: You have several options that can help you save your home from auction! Negotiating a loan modification or payment plan to pay your defaults, requesting a deed-in-lieu, making a short sale, suing your lender, or filing for bankruptcy are some of the options available to you. Contact Law Office of Yuriy Moshes, P.C. for a free consultation, and together, we can decide what option is best for your home.