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.
Steven Warren Smollens and Carl Nelson agree with this answer
A:
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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
