Judgment Note Form For Foreclosure In New York
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See Paths of a Foreclosure Case in New York State. Before the Judge signs the judgment of foreclosure and sale, the Judge signs an Order of Reference. The Order of Reference sends the case to a Referee to add up the total amount that plaintiff is owed under the terms of the mortgage.
New York is a judicial foreclosure state, which means that the lender has to sue the borrower in order to enforce their rights under the mortgage and note. If the lender wins the lawsuit, it obtains a judgment from the court, which allows the lender to sell the property at an auction.
On December 30, 2022, New York Gov. Kathy Hochul signed into law the Foreclosure Abuse Prevention Act (the “Act”), which will hinder lenders and servicers' ability to foreclose on New York homeowners.
A plaintiff can seek before the clerk a default judgment based on the initial non-appearance of the defendant in cases where both: The plaintiff makes the application within one year of the defendant's default. The claim is for either: – a sum certain; or – a sum that can be made certain by computation. (CPLR 3215(a).)
It takes at least 6 to 8 months for a fore- closure lawsuit to go from summons and complaint to auction — even if you ignore the court case. In reality, however, the process is taking much longer. If you file an Answer and appear at the mandatory settlement conference, it is taking lenders 1 to 3 years to foreclose.
During the 5 week notice period, the homeowner can stop the foreclosure by making-up all missed payments (including late fees and attorney costs) or working with an attorney to stop the foreclosure process. The only time it is too late to stop a foreclosure is when the property is sold at auction to a new party.
Unfortunately New York State does NOT have a right of redemption period post foreclosure sale. Once the property is sold at the public auction to the highest bidder, the original foreclosed owner has no right to satisfy the entire amount owed the lender.
If you got a Summons and Complaint, you need to deliver a written Answer form to the plaintiff and the Court. Your Answer is what you tell the court about what the plaintiff said in the Complaint. The Answer tells the court your defenses or reasons the plaintiff must not win the case.
New York is a judicial foreclosure state, which means that the lender has to sue the borrower in order to enforce their rights under the mortgage and note. If the lender wins the lawsuit, it obtains a judgment from the court, which allows the lender to sell the property at an auction.
RPAPL Section 1301 amends New York's “election of remedies” law by providing that once a foreclosure action is adjudicated to be beyond the six-year limitations period, the lender is prohibited from filing a new action on the same debt (including a new action to sue on the promissory note).
