From beginning to end, the process of foreclosure can take up to two years in the state of New York. In the beginning, after a payment is missed, a homeowner has about 90 days to work with the loan servicer to pay the amount owed before the servicer takes legal action. To minimize the length of the process, it is in the homeowners best interest to seek legal counsel as the servicer will have attorneys of their own at the mandatory settlement conference.
In the beginning, with so many options to take when facing hardship and the mortgage becomes difficult to pay, fees start piling up as a result of the loan servicer taking action. To minimize the costs of process, it is best to find the option best suited to homeowners situation.
If a homeowner is having difficulty making their payments, there are two paths of action: deciding that you want to stay in your home or considering the option of leaving your home. If you want to stay, your options include but are not limited to refinance, reinstatement, repayment plans, forbearance, and modification – each involving unique sets of laws, regulations, and outcomes. For those with extreme hardship, homeowners can file for Chapter 13 bankruptcy which temporarily halts the foreclosure process, but in that instance the homeowner has to show the Bankruptcy Court that he can afford a payment plan.
Depending on the homeowners situation, it is best to seek legal help as early as possible to ensure that the best path is being taken.