When the plaintiff starts a foreclosure case against the owner of your home, the law says that the plaintiff must tell the tenants within 10 days. You may find out about the case by seeing a notice posted on the door to your building or the plaintiff may give you a copy of the foreclosure Summons and Complaint. Do not worry if your name is on the papers. This does not mean that you have to move out. Many things can happen:
- The owner may settle the case and keep the property
- The bank may not be able to prove its case
- The case may take a very long time, often even a year, and you may move before it is over
- The new owner may want to keep you as a tenant
- You may have the right to stay anyway
Foreclosure is a type of lawsuit. In a foreclosure the holder of your mortgage asks a court to let them sell your house at auction in order to pay off your debt. If that happens, you could lose your home. The mortgage holder is often the bank that you borrowed the money from to buy the house, but it could be another bank or company that has taken over the mortgage. The mortgage holder will be the “plaintiff” in the lawsuit and you will be named as the “defendant.” You may not recognize the name of the plaintiff because you may be making payments to some other company that works for your lender called a “mortgage servicer.”
This section of the website tells you what to do in a New York State Supreme Court case after you get a foreclosure Summons and Complaint. If a foreclosure case has not been started yet, but you have missed mortgage payments or you have gotten an Acceleration letter from mortgage holder, it is very important that you seek help now.
By: Mitchell Allen
Takeaway: When bankruptcy’s looming, sometimes the best thing you can do is buy yourself some time.
This article is an excerpt to “A Survival Guide to Debt” by Mitchell Allen.
When you’re sick and you go to the doctor’s office, the first thing he or she asks (when the doctor finally gets to you) is usually something like, “So, what seems to be the problem?” That’s when you get to describe your symptoms so that the doctor can start figuring out what medicines to prescribe and what other treatments to recommend.