Owning a home is the dream of many people, but it comes with serious financial responsibilities. Unfortunately, many homebuyers do not or are unable to fulfill these responsibilities, making payments late or, in some cases, not paying at all.
Serious delinquency is defined as the borrower being 30 days behind in their payments. According to the Federal Reserve Bank of New York, 1 in 10 residential mortgages in NYC is in serious delinquency.
When attempts at getting the borrower to pay fail, the lender can pursue a foreclosure action. In plain terms, a successful foreclosure allows the lender to gain ownership of the property to sell it and recoup their losses.
However, the laws governing foreclosure in New York State are complex and frequently change. For this reason, lenders should work with professionals knowledgeable in the foreclosure process in New York and stay updated on legal developments. Doing so ensures that foreclosure filings are done without errors that can delay or stop the foreclosure process.
Understanding How Foreclosure Works
The foreclosure process in NYC is governed by federal, state, and local laws, most of which are designed to protect borrowers from unscrupulous lenders. It comprises multiple steps, and it is a long, complex process that can take months to years to complete.
The lender then sends a Notice of Default (NOD) after 90 days of missed payments. This should include information on how the borrower can get help to meet their financial obligations to the lender. The NOD is also called a “pre-foreclosure notice.”
Generally, NYC lenders must wait until the borrower is 120 days delinquent to file lis pendens, an official notice that they have filed a lawsuit. They must also file a Summons and Complaint and have it delivered to the borrower, either in-person via a process server or by mail. Having an experienced process server deliver it is a wiser option as this helps ensure the borrower receives the papers, and the lender receives proof that the service was done.
If the borrower answers, the next step is a mandatory settlement conference (MSC), wherein both parties come to court to look for ways the borrower can settle the amount owed. The MSC is held within 60 days of service—the plaintiff should have filed an Affidavit of Service within 20 days from the date papers were served.
In cases where the lender and borrower cannot come to an agreement, the litigation begins.
If the borrower doesn’t answer the Summons and Complaint and does not attend the MSC, the lender can ask the court for a judgment.
Why Having a Process Server Is Critical When Filing a Foreclosure
A foreclosure is a lengthy, complicated, and time-sensitive process, and who you choose to serve your foreclosure notices can vastly affect its outcome. A process server knowledgeable in foreclosure procedures is necessary to ensure proper filing. If the lender and the process server do not completely follow the prescribed process, the borrower may be able to stop the foreclosure.
For the best possible outcome, the lender and the process server must submit legal papers promptly and ensure their accuracy and compliance with applicable laws. These documents may include:
- Notice of default/breach letter
- 90-day pre-foreclosure notice
- Summons and Complaint
- Eviction letter
The process server will also be responsible for filing the Affidavit of Service, which proves that the borrower was served.
Serve Index LLC: Efficient and Accurate Foreclosure Process Service
Serving delinquent buyers means dealing with individuals who do not wish to lose their homes and can become evasive or even angry. Our process servers act professionally and work with integrity, and we are experts in serving even borrowers who are uncooperative or upset. We also provide skip-tracking solutions for borrowers who are purposely trying not to be found.
Our excellent track record is proof of our expertise. All of the process servers at Serve Index LLC are licensed and highly trained. You can depend on us to ensure accurate, timely service of foreclosure papers. For your peace of mind and to comply with NYC foreclosure laws, we also offer confirmation of service and proof of service.
Get in touch with us today to learn more about our foreclosure process service solutions in New York City. We look forward to being of assistance to you and your business.