Missed a mortgage payment or two? Have some kind of hardship occurring in your life? Worried about your next payment and your ability to pay it? These are all real concerns, and they are making you wonder just how long you have before the mortgage lender starts the process to foreclose on your home. But there is no easy or one-answer-for-everyone when it comes to how many mortgage payments you can miss before foreclosure. Here, we provide an overview of the factors specific to New York that go into answering this question.
What is a typical foreclosure timeline in New York?
The timeline for a specific foreclosure in New York depends on the mortgage company and its policies, but there is a general timeline typical of foreclosures in New York.
First, if you are late on a mortgage payment, most lenders provide a grace period – the most common grace period is 15 days. If you pay within the grace period, you should be fine, but if you pay outside of it, you will likely have a late fee to pay, too. The late fee can be found on the promissory note.
Second, if you are late after 30 days, meaning you miss your second payment, then you are in default of your loan.
Third, if you are late after 90 days, meaning you have defaulted three payments, then the mortgage lender gets aggressive. It may send you a letter giving you so many days – typically 30 days – to bring your account to date.
Fourth, if the account is not made current within 120 days, the mortgage company may file a complaint with the court. The mortgage company, however, must obey federal law –the Consumer Financial Protection Bureau – and wait until you are 120 days delinquent on mortgage payments before it files the complaint. Once the lender files the complaint, the foreclosure process commences.
This means you have 120 days – or four months worth of payments – before the actual foreclosure process begins.
Avoiding the mortgage company will not help the situation either. It may initially be flexible to change the terms of the mortgage agreement, but that flexibility lessens with each late payment.
How can you avoid foreclosure in New York?
Like anywhere, you avoid foreclosure by making timely payments. If you have missed a payment, you should in the least contact the lender to explain why or at best, contact an experienced foreclosure defense attorney in New York.
It is beneficial to note that mortgage companies want to avoid foreclosures at all costs. Having an experienced foreclosure defense attorney can go a long way in helping you negotiate with the mortgage company with things like modifying a loan so that the terms will make it manageable for you to make your payments timely – and to catch up with already-missed payments.
Always feel free to contact Melvin Monachan Attorney at Law for answers to your foreclosure questions. We represent clients throughout New York City, Nassau, and Suffolk. And we can represent you, too, to help you get back on track.