Singh & Rani, LLP highly recommends starting the loss mitigation process with the homeowner’s mortgage company immediately if you are behind in your mortgage payments. The loss mitigation process allows the homeowner to apply for loan modification, which may result in significant reduction in interest rate ultimately lowering your monthly payment.

Have you missed your mortgage payments and have been served with 90 Day Pre-foreclosure Notice?  The bank must wait at least 90 days before starting a case after serving said Notice. DO NOT WAIT FOR THE BANK TO START THE CASE, YOU CAN ACT NOW AND SEEK HELP FROM A FORECLOSURE ATTORNEY TO EXPLORE YOUR OPTIONS AVAILABLE TO YOU TO SAVE YOUR HOME.

If you do not act after receiving the 90 Day Pre-foreclosure Notice, the bank/lender will file summons and complaint with “lis Pendens” and serve you with the filed papers in person or by mail. At this point you will be in foreclosure proceedings.

Timeline of Foreclosure Action is as follows:

Once the Summons and Complaint have been served ANSWER will be due in 20 days if you were served in person or 30 days if you were served by mail.

Once answer has been filed New York courts require the homeowner and the lender to engage in mandatory settlement conference. There may be several conferences over the next few months before the case goes into discovery.

After discovery is completed the bank/lender usually files a motion for summary judgment and order of reference which allows the bank/lender to ask the court for judgment of sale without trial and to appoint a Referee to decide the amount you owe based on the papers submitted by the bank/lender.

There are additional steps the lender must follow to hold an auction. At the foreclosure auction the house/property will be sold to the highest bidder, the bank/lender will collect what is due to them including the mortgage owed, the cost of litigation and attorneys fees for the foreclosure action. If there is a surplus, the homeowner is entitled to the monies.

The information above is intended to provide limited information only and it is not legal advice. If you are interested in discussing your foreclosure matter, or otherwise need further guidance in this or a related area of law, SINGH & RANI, LLP can assist you, please call at 212-729-6920.


Bikram Singh

Mr. Singh has been practicing law in the New York State and Federal Courts for more than 11 years. He was a principal attorney at Bikram Singh Law, P.C., after graduating with honors from Touro College Jacob D. Fuchsberg Law Center in 2008.