Foreclosure Defense

1
Foreclosure Defense

• Tel [phone],?718-509-6542
• ?914-380-4209, 914-481-3450
• www.johncranebankruptcy.com

2
Foreclosure...

• A foreclosure is a legal proceeding that is
  started by a lender after a home owner has failed
  to pay his/her mortgage.
• After a home owner has failed to make their
  payments on time, a lender will serve notice of
  default on the borrower as required by the loan
  documents.

3
Foreclosure

• If the borrower does not cure their default by
  the time stated in the default notice, the lender
  can commence foreclosure proceedings in
  accordance with the law to take actual possession
  of the home.
• If a foreclosure is permitted, the borrower loses
  title to the home and the lender becomes the
  official owner of the home.

4
A foreclosure proceeding...

• A foreclosure proceeding occurs when a lender
  files a lawsuit seeking to take possession of
  your home.
• After the lender commences the action, the
  borrower is given a limited time to reply.
• If the borrower fails to reply, a default
  judgment can be entered and ownership of the home
  transferred to the lender by the court.

5
A foreclosure proceeding

• If a borrower appears in the action, the Court
  will usually order the parties to provide each
  other with whatever information each has in their
  possession and over time, listen to the factual
  and legal arguments of each party.
• Ultimately, a Judge may make a legal ruling
  deciding the result or a trier of fact (jury)
  could decide the case if an actual trial is
  needed.

6
Notice of Lis Penden

• A Notice of Lis Penden (Lis Pendens) is a legal
  document that is filed with the County Clerks
  Office.
• This document gives notice to all that there is a
  pending lawsuit against the borrower and the
  property.
• A Notice of Lis Penden is usually filed when a
  bank or creditor wishes to initiate foreclosure
  proceedings against a delinquent borrower.

7
Notice of Lis Penden

• Once the Lis Pendens is filed, the borrower is
  served with a Summons and Complaint.
• These documents give the borrower formal notice
  that the foreclosure action has been started.
• In New York State, a borrower then has 20 days to
  respond if they were personally served, and 30
  days to respond if they were served in any other
  manner.

8
If I received a foreclosure notice

• You should act as quickly as possible to explore
  any foreclosure defenses you might have.
• Speak with a qualified lawyer.

9
If I received a foreclosure notice

• A lawyer will suggest you how to avoid
  foreclosure, or if foreclosure is not avoidable,
  help you protect any and all rights you may have,
  including
• the right to sell your home if you have equity in
  it
• a short-sale if it can be negotiated with your
  lender
• a deed in lieu of foreclosure whereby you can
  walk away from the home without any further
  obligations to your lender.

10

• Contact us
• John M. Crane, P.C.
• Bankruptcy attorney, White Plains, Manhattan
• ?Tel [phone]
• ?914-380-4209, 914-481-3450
• www.johncranebankruptcy.com