Q: What happens after you default mortgage 120 days
A: After your default for 120 days, your lender or the lender's servicer may elect to send you a default notice or a letter of acceleration. Accelerating the loan means that they are calling it as fully due and payable now instead of over the regular loan term. They may also send you a 90-day pre-foreclosure notice under RPAPL 1304 which is the New York law requiring that. After they send out the necessary notifications, they might file a summons and complaint with the Supreme Court for the county where the real estate is located and a lis pendens, or notice of pendency, with the county clerk which is public notice that there is a foreclosure action pending on the property. Foreclosure can take quite a long time in New York but you should take immediate steps to address this. You should hire an experience attorney to assist you with a loan modification, foreclosure defense, or if you simply wish to get rid of the property, you may be able to surrender or sell it. There are options to consider but these options can be lost and time barred if you delay. Please note that this response does not create an attorney-client relationship with me or my firm as we do require a signed written retainer agreement to become someone's lawyer. Please feel free to reach out to us to schedule a consult if you are looking for help. I've handled many cases in Brooklyn over 30 plus years.
New York is a judicial foreclosure state, which means that a creditor-sale of a piece of residential real property cannot happen without a court order. The lender first needs to provide you with certain pre-foreclosure notices, and then ultimately file a summons and complaint and serve you with it.
The case then moves to mandatory mediation, and ultimately if a loan modification is not worked out, the lender will need to file a motion to obtain a court order to sell the property. Homeowners in New York generally have a significant amount of time to address any mortgage default, but you need to take the appropriate steps to preserve all of your rights .
As with many significant legal issue, I would certainly recommend contacting a qualified attorney to deal with any mortgage default.
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