New York Foreclosure
Frequently Asked Questions

A foreclosure is a legal proceeding to enforce a loan. The right to foreclose comes from the mortgage.

The note is proof of the underlying loan. If it is not paid back, the lender may commence a court proceeding to collect the amount due under the note.

The mortgage gives the lender a security interest in the home. It gives an additional right to force the sale of the home if the loan is not paid.

Amortization is the process where the mortgage plus all interest is calculated to be equal monthly payments over the lifetime of the loan.

The acceleration of the note occurs when the loan is not paid and demand is made to pay it in full. Without accelerating the note, the amortized mostly payments would remain in effect, coming due each month.

Yes, there are numerous defenses to a foreclosure. There are many protections in place under the law for homeowners, and if a lender attempts to take short cuts around them, the entire foreclosure can dismissed.

The lender's failure to comply with the 90 day notice, the plaintiff's lack of standing, and the statute of limitations are some of the more common defenses used.

The statute of limitations for a New York foreclosure is six years. This defense can apply in a number of ways, depending on whether the loan has been accelerated or note. It can also apply to the lender collecting previously paid property taxes and insurance. It is possible for part of the amount owed to be barred by the statute of limitations and some of it remaining collectable.

In order to file a lawsuit, the plaintiff must have a direct interest in the case. Without any interest, the plaintiff lacks standing. In a foreclosure, it means either the current creditor must file the foreclosure. It also means a servicing agent with the proper authorization can file it as well provided the authorization is clearly stated in the legal papers.

The answer to the foreclosure is one of the most important documents a homeowner can file. Filing an answer means you are not agreeing that the creditor should be given everything they are asking for with no questions asked. The lack of an answer also means you are waiving all possible defenses to the foreclosure, even if they are legitimate. The answer means you are preserving your right to challenge any and all claims once you had the opportunity to verify them, and preserving your right to assert any valid defenses.