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Foreclosure Defense

Tel: 212-571-1898,718-509-6542

914-380-4209, 914-481-3450

www.johncranebankruptcy.com

Foreclosure...

• A foreclosure is a legal proceeding that is started by a lenderafter a home owner has failed to pay his/her mortgage.

• After a home owner has failed to make their payments ontime, a lender will serve notice of default on the borrower asrequired by the loan documents.

Foreclosure

• If the borrower does not cure their default by the time statedin the default notice, the lender can commence foreclosureproceedings in accordance with the law to take actualpossession of the home.

• If a foreclosure is permitted, the borrower loses title to thehome and the lender becomes the official owner of the home.

A foreclosure proceeding...

• A foreclosure proceeding occurs when a lender files a lawsuitseeking to take possession of your home.

• After the lender commences the action, the borrower is givena limited time to reply.

• If the borrower fails to reply, a default judgment can beentered and ownership of the home transferred to the lenderby the court.

A foreclosure proceeding

• If a borrower appears in the action, the Court will usuallyorder the parties to provide each other with whateverinformation each has in their possession and over time, listento the factual and legal arguments of each party.

• Ultimately, a Judge may make a legal ruling deciding the resultor a trier of fact (jury) could decide the case if an actual trial isneeded.

Notice of Lis Penden…

• A Notice of Lis Penden (“Lis Pendens”) is a legal documentthat is filed with the County Clerk’s Office.

• This document gives notice to all that there is a pendinglawsuit against the borrower and the property.

• A Notice of Lis Penden is usually filed when a bank or creditorwishes to initiate foreclosure proceedings against adelinquent borrower.

Notice of Lis Penden

• Once the Lis Pendens is filed, the borrower is served with aSummons and Complaint.

• These documents give the borrower formal notice that theforeclosure action has been started.

• In New York State, a borrower then has 20 days to respond ifthey were personally served, and 30 days to respond if theywere served in any other manner.

If I received a foreclosure notice…

• You should act as quickly as possible to explore anyforeclosure defenses you might have.

• Speak with a qualified lawyer.

If I received a foreclosure notice…

• A lawyer will suggest you how to avoid foreclosure, or ifforeclosure is not avoidable, help you protect any and allrights you may have, including

– the right to sell your home if you have equity in it

– a “short-sale” if it can be negotiated with your lender

– a deed in lieu of foreclosure whereby you can walk awayfrom the home without any further obligations to yourlender.

Contact us:John M. Crane, P.C.

Bankruptcy attorney, White Plains, Manhattan

Tel: 212-571-1898,718-509-6542

914-380-4209, 914-481-3450

www.johncranebankruptcy.com