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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.
In New York, the tax foreclosure procedure is similar to the mortgage foreclosure process. A petition (lawsuit) is filed in court. If you don't respond to the lawsuit by filing an answer that lists your objections to the case, the court will enter a default judgment against the property.
Lender asks court for a judgment on default and to appoint a Referee to decide the amount you owe and write a report. Lender asks court to accept the Referee's findings. Judge orders sale of your home. Lender and Referee choose date for auction at the courthouse.
Before a Foreclosure Action Begins in Court You have a right to be notified at least 90 days before a foreclosure suit is filed informing you that you are in default and at risk of foreclosure. You have the right to explore ?loss mitigation? options that may allow you to keep your home and avoid litigation.
If you engage in a short sale or your mortgage lender forecloses on your home, the Internal Revenue Service treats it just like a sale. Foreclosures and short sales may also require you to recognize ordinary income if the lender cancels any of your outstanding mortgage balance and you're ineligible for an exclusion.