Foreclosure Timeline In New York

I'll Spin the Wheel Pat!

LoanSafe Member
Mar 25, 2015
40
6
8
Hello all,

I have not paid my mortgage(s) since January of 2012. I was just served my foreclosure complaint in February of 2015. I intend to stay in my house until the end (think I'll bolt just before the auction.) So how long is this all going to take! LOL

There are many, many, MANY foreclosure cases going on in NY, especially the 5 boroughs and Long Island. We're making news headlines but not many people are talking. So where is everyone? A settlement conference perhaps? LOL I thought starting a thread such as this might encourage more New Yorkers to share their story so we can learn all from each other about strategies and what the general experience has been. I know one thing we probably have in common, we GOOGLE.

Maybe not everyone knows about Loan Safe. But I know I'm not the only one who has googled the phrase "foreclosure timeline in NY." It's a pain, too, the results turn up lots of junk, foreclosure listings and attorney sites who want you to hire them to defend you. I am more interested in hearing about what's going on with the people. So I'll share my story, what's happened so far, and come back to tell you how it's going.

One thing you need to know about me is I don't want my crappy little, waaay underwater house that I paid to much for! I am only interested in saving my money until the free rent runs out. I'm trying to turn the worst financial decision I've ever made into the best one I've ever made. Do I wonder about deficiency judgments? Of Course! Do I think it will happen to me? Kinda doubt it but you never know. I asked my accountant last week if he has seen any clients with them and he said, "No, not one. But lots of 1099's." So that gives me some hope. Will I be able to negotiate a DIL? I dunno but I'm not leaving before I save enough for a new house lol. Will the Mortgage Debt Forgiveness Act kick in for us New Yorkers stuck in the foreclosure merry-go-round? I mean, come on! It's not our fault this takes so long! But that's the government for ya, leave you hanging and wondering until the very last second. I'm going to quit my job and leave this dirty overpriced state anyway so for me, I've just got to time it right then perhaps claim insolvency the year the house is auctioned off. But sheesh, when will that be? Have you looked at any of the recent public listing for foreclosure sales? They reference court cases that got going in 2008, 2009... not many for very recently. So yes, it's going to take some time.

So lucky for me, I found loansafe back in 2012. Ya know, googling for answers. I had been paying $2500 a month on my piggy back loan. Owed $225K on the first, $50K on the second. And the house is (still) worth less than $200K. Like maybe $175K now. I read about how to settle a second mortgage and, even though I knew they could become a sold out Jr., I decided I wanted it gone if it could be gotten rid of. Citibank was the second. So, I stopped paying them and saved my $500 monthly mortgage payment to them. After a little over a year, they sent my account to their internal collections department. This was a critical point, I think, because their next move was to sell my loan to a third party collection house. But I beat them to the punch. Having saved over $6K, I called them up and asked if there was anyway I could settle the loan. They told me they would not accept less than 10%. Having spoken to a number of "debt settlement" houses that could get the same deal only with their fee on top, I decided that wasn't a bad deal and I offered Citi the 10% (gave them $5K of the $6K I saved not paying them). They accepted my offer the next day. Bam, one loan gone. Never to be heard from again except for the 1099 they sent me. At least now if I wanted to do a short sale or DIL, I had more flexibility to do so.

So then I started playing the Hampster Wheel Game (see the thread). I learned about ways to delay the ultimate foreclosure complaint by submitting incomplete HAMP applications. I was also lucky enough to have my servicer change twice. I started with BOA, then they sent my loan to SLS, then they sent the loan to Nationstar. So each time, I had to start over with new paperwork. Eventually, tho, Nationstar did file the complaint. I answered it pro-se by uploading my answer right to the court web site. It was very easy. I found a template on line that was all written out, I just had to fill in my info and check off some boxes. Hey, I know I'm gonna loose eventually, but not answering the complaint makes it easier for them and we don't want that lol. No, I want them to know that they will have to fight me and prove everything! And when I get to the settlement conference, I think I'll have another opportunity to start the HAMP application process all over again. So how much more time does that buy me? I dunno.

I have some days off next month and I'm going to go to the courthouse and sit in on some of these cases going on. I've been to ecourts (that's actually where I filed the answer) and I read about the cases but you can only tell so much about what is really happening. I don't have a date yet for my first court appearance but I want to prepare myself for what to expect. This is the point where I'd love some insight!

Do tell. And best of luck to you all!

Wheel Spinner
 
Last edited by a moderator:
  • Like
Reactions: lisa2015

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
48
Southern California
www.loansafe.org
Great post and I agree Western Belle. Thanks for sharing your HAMPster wheel journey with the LoanSafe community.

It seems like you have every angle figured out and there is not much else you can do other that what you already know. I'm not sure how much time asking for another HAMP loan modification will buy you, buy I assume at the least, a few months, and maybe 6 months.

I'm sure others will comment here once your post gets read by more members.

 

nymess

LoanSafe Member
Nov 9, 2008
60
1
8
I too am going thru this in NY. Underwater big time, originally with Bank of America and then to Seterus. We hired a lawyer to help us with this whole thing. The lawyer advised us that is wasn't a good business decision to stay in this house so we decided we will walk away, the bank can have it!! We also have a home equity loan with chase that we stopped paying. I think it has been like 2 yrs since we paid on either loan. We haven't heard anything from chase in quite a while. Question to anyone : is it better to try to settle this before or after the forclosure? Also once this forclosure is done what will our "consequences" be besides bad credit? Will we be able to just walk away from this and move on? We are planning on leaving New York once it is done. Has anyone else done this with a lawyer and how long has it taken?
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
48
Southern California
www.loansafe.org
Hello nymess,

It is best to just let it go and settle later if needed be. I assume this is a nonrecourse loan? If so, then you can walk away and just move on. But you will have credit issues and have to work on that if you ever want a decent loan again or a mortgage.

This can take anywhere from 1-5 years. A lawyer makes little difference other than having a high priced person in a suit to hold your hand and take your money during the process.
 
Last edited:

nymess

LoanSafe Member
Nov 9, 2008
60
1
8
What do you mean by nonrecourse loan? What should we do if we want to eventually get another much smaller mortgage?
 

I'll Spin the Wheel Pat!

LoanSafe Member
Mar 25, 2015
40
6
8
What do you mean by nonrecourse loan? What should we do if we want to eventually get another much smaller mortgage?
Hi nymess, Hi Moe,

Moe - We are in NY so confused why a mortgage would be non-recourse unless bankruptcy is involved? I was under the assumption that the loan is governed by state law and NY is a recourse state - meaning that the bank can sue you - after the house is sold at action - if the sale amount is less that what is owed. The amount they can sue you for is the difference between what is owed and either the sale price or the fair market value, which ever is higher. In NY, the bank has 90 days from the auction to file suit or they miss out. That's not too bad, Florida is like 5 years! I've read also that they have to serve you personally so what if one cannot be found? I would be interested to hear from others if they are involved in a deficiency judgement and how it's going? Like how easy is it to settle and for what price?

I just found out that my first court date is the first week of June. So let me recap a bit. The bank filed the complaint in October 2014, served me in February 2015, which I answered in the nick of time, and now the first court date in June. That's nine months just to get me into a courtroom.

One big question I have is, once the foreclosure is final, how long until the bank auctions off your house? Anyone see these zombie foreclosures out there? Some of em are bank owned, yet to hit the market. And some of em haven't finished the foreosure process yet but the homeowner bailed. I wonder if people know that they can stay in the house until the auction and even then some (new owner would have to evict you.)

Nymess, are you still in the house? You mention you hired an attorney, didn't he/ she give some insight into settling a 2nd mortgage and what the end consequences could be for you once the whole forclosure is over? I settled my second so I didn't have to deal with it later, to give myself some flexibility (can do a DIL or a short sale much easier) and also because the mortgage debt foregiveness act was still an active law at the time (which it could still be, we are all waiting for the government on that one!) I've read that if you are underwater, once the house is sold, the first lender gets all, the second gets nothing. So it becomes an uncolateralized debt. I think like credit card debt. And often these are sold to third parties who will stand to annoy the heck out of you to collect. I'm not certain what more there is to it or if you can fully escape it. Maybe they would accept a small settlement??

As far as getting another mortgage, I'm in no rush. Gonna take the next purchase real careful and hoping to save enough before the auction to buy another house with cash.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
48
Southern California
www.loansafe.org
What do you mean by nonrecourse loan? What should we do if we want to eventually get another much smaller mortgage?
Some states offer lenders a choice between foreclosing and suing for the debt. These are “one action” states. New York is a one action state. Your loan might actually say if it is recourse as well since they have the choice.

If the mortgage servicer forecloses the deed of trust out of court, they have chosen one action and may not bring a lawsuit to recover a deficiency because that would be a second action.

If the servicer chooses to sue the borrower and obtain a foreclosure order, and if the proceeds of the judicial sale of the real estate are not sufficient to repay the loan balance, then a deficiency for the balance is allowed. A lawsuit is permitted as the lender’s one action.
 

nymess

LoanSafe Member
Nov 9, 2008
60
1
8
Yes we are still in the home, the lawyer was going to charge more money to do the 2nd so I said I'd just do that one myself. The loan balance was 38,000, and from what I've read here on these forums I should be able to take care of settling this on my own. Just not sure when I should do it.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
48
Southern California
www.loansafe.org
Hi nymess, Hi Moe,

Moe - We are in NY so confused why a mortgage would be non-recourse unless bankruptcy is involved? I was under the assumption that the loan is governed by state law and NY is a recourse state - meaning that the bank can sue you - after the house is sold at action - if the sale amount is less that what is owed. The amount they can sue you for is the difference between what is owed and either the sale price or the fair market value, which ever is higher. In NY, the bank has 90 days from the auction to file suit or they miss out. That's not too bad, Florida is like 5 years! I've read also that they have to serve you personally so what if one cannot be found? I would be interested to hear from others if they are involved in a deficiency judgement and how it's going? Like how easy is it to settle and for what price?

I just found out that my first court date is the first week of June. So let me recap a bit. The bank filed the complaint in October 2014, served me in February 2015, which I answered in the nick of time, and now the first court date in June. That's nine months just to get me into a courtroom.

One big question I have is, once the foreclosure is final, how long until the bank auctions off your house? Anyone see these zombie foreclosures out there? Some of em are bank owned, yet to hit the market. And some of em haven't finished the foreosure process yet but the homeowner bailed. I wonder if people know that they can stay in the house until the auction and even then some (new owner would have to evict you.)

Nymess, are you still in the house? You mention you hired an attorney, didn't he/ she give some insight into settling a 2nd mortgage and what the end consequences could be for you once the whole forclosure is over? I settled my second so I didn't have to deal with it later, to give myself some flexibility (can do a DIL or a short sale much easier) and also because the mortgage debt foregiveness act was still an active law at the time (which it could still be, we are all waiting for the government on that one!) I've read that if you are underwater, once the house is sold, the first lender gets all, the second gets nothing. So it becomes an uncolateralized debt. I think like credit card debt. And often these are sold to third parties who will stand to annoy the heck out of you to collect. I'm not certain what more there is to it or if you can fully escape it. Maybe they would accept a small settlement??

As far as getting another mortgage, I'm in no rush. Gonna take the next purchase real careful and hoping to save enough before the auction to buy another house with cash.
Hello,

Please see my answer above. New York is a one action state. If the mortgage servicer forecloses the deed of trust out of court, they have chosen one action and may not bring a lawsuit to recover a deficiency because that would be a second action. If the servicer chooses to sue the borrower and obtain a foreclosure order, and if the proceeds of the judicial sale of the real estate are not sufficient to repay the loan balance, then a deficiency for the balance is allowed. A lawsuit is permitted as the lender’s one action.

The foreclosure will actually be a sale on the date of your foreclosure where it may be auctioned off that day. But New York is well know to have zombie foreclosures. Here is an article on how they are making efforts to fight back against the rising tide of zombie properties. http://www.housingwire.com/articles/32962-new-york-doubling-down-in-fight-against-zombie-foreclosures
 

I'll Spin the Wheel Pat!

LoanSafe Member
Mar 25, 2015
40
6
8
Hello,

Please see my answer above. New York is a one action state. If the mortgage servicer forecloses the deed of trust out of court, they have chosen one action and may not bring a lawsuit to recover a deficiency because that would be a second action. If the servicer chooses to sue the borrower and obtain a foreclosure order, and if the proceeds of the judicial sale of the real estate are not sufficient to repay the loan balance, then a deficiency for the balance is allowed. A lawsuit is permitted as the lender’s one action.

The foreclosure will actually be a sale on the date of your foreclosure where it may be auctioned off that day. But New York is well know to have zombie foreclosures. Here is an article on how they are making efforts to fight back against the rising tide of zombie properties. http://www.housingwire.com/articles/32962-new-york-doubling-down-in-fight-against-zombie-foreclosures
Hi Moe,

NY is a customarily a judicial foreosure state as loans are customarily secured by mortgages, not deeds of trusts. The first scenario you describe is rare and not the reality. I believe also that the borrow in scenario #1 would still have the right to request the judicial foreclosure. NY has also gone to great lengths to require mandatory settlement conferences in hopes that an agreement can be reached between the bank and the borrower and keep the borrower in the house.

Also, it is completely absurd to say that the sale will occur on the foreclosure date. For one thing, once you loose the case (and may consider yourself foreclosed upon) the foreclosure action still has to go through a final court approval. Threre also needs to be a notice of foreosure sale posted in a public newspaper annoucing the date and time and place of the auction at least two weeks prior to the sale. Every article I've read says that the sale date occurs at least 4 months after the foreosure is final. I browse through public foreosure listings most of the recent sales are from cases from 2008 - 20012. It has been observed as well that banks aren't putting houses up for sale right away because they are waiting for market conditions to improve and in the meantime, the borrower, even though they don't own the home anymore, may still be living there and taking care of it. They want to enforce a new law that banks should have to maintain the home once the borrower moves out, creating this Zombie home. Hahahhaa yeah right.

The purpose of starting this thread is to share information amongst New Yorkers who are currently going through this or have recently gone through it. The purpose of this thread is to talk about what is really going on TODAY.

nymess, there's a great thread on loansafe which discusses how to settle your second. Perhaps you've already read it but if not, there's lots of great info there. Good luck with your decision and strategy.
 

I'll Spin the Wheel Pat!

LoanSafe Member
Mar 25, 2015
40
6
8
p.s. sorry about my typos! lol

So just for fun (this time), I visited the ecourts website. https://iapps.courts.state.ny.us/webcivil/FCASMain

I did a search across all NY counties for foreclosure cases that were initiated in 2014. I searched under three plaintiffs and this is how many cases each one has just for 2014 alone: Chase (2265), Nationstar (2481) and Wells Fargo (4542). That's 9288 cases in a year's time for just three servicers/ note owners that randomly came to mind. So how many NY foreclosure cases were filed in the court in 2014 total? How about this, how many foreclosure cases have been filed across all servicers/ note owners for all years that are still active and ongoing? It's impossible to say because one needs to put in some search criteria, you can't do a search that broad. But if I had to guess, I think it would be in the hundreds of thousands.

Incidentally, the ecourts web site is a great place to look at on going cases and even track your own. (You wont see your case, however, until you've either answered the complaint or the time to answer has lapsed and the attorney's have filed for a default judgment.) You can view the complaints and answers and other e-filed documents in most all the cases and you can see how many court appearances a case has had. I have not been officially notified by mail of my first court appearance yet, I saw the date posted on my case. Realtytrac is another great place to look and find out if your servicer's attorney has filed the complaint yet. If you can find your property on Realtytrac, the complaint has been filed. I feel these are useful places to check out when you're trying to figure out your own timeline. Each case is different and whether or not you put up a fight can make a difference. Knowing where you are in the process can be empowering.
 

Western Belle

LoanSafe Member
Feb 4, 2015
39
6
8
55
I love reading your posts ... honestly, thank you. I'm in Westchester County and plan to surf a bit on ecourts. I submitted my settlement offer on loan #2 last week to PHH (servicer for HSBC). already recv'd letter stating I have until mid-May to become current - i know i can simply walk away due to BK7.

Some background (listed on other threads): BK7 2011, discharged on both, loan #1 is current, loan #2 haven't paid in almost three years.
Loan #1 = $197K
Loan #2 = $152K
total = $349K
full appraisal = $305K (submitted along with a 3% offer to bank)

My problem w/ the credit agencies has been rectified (my discharged mortgage debt continued to be reported). I made only one call to each agency. Poof - fixed! Amazingly I didn't have to provide proof or anything. I also recvd an acknowledgement letter from PHH that they are looking into it - I had originally filed a complaint against them through the Consumer Financial Protection Bureau. I have a call w/ my BK attorney next week just to run it by him .... items falsely reported for years is very wrong.

there's a FC property not too far from my house ... will look into that and see if I can come across dates/timeline.

thanks again!
 

nymess

LoanSafe Member
Nov 9, 2008
60
1
8
p.s. sorry about my typos! lol

So just for fun (this time), I visited the ecourts website. https://iapps.courts.state.ny.us/webcivil/FCASMain

I did a search across all NY counties for foreclosure cases that were initiated in 2014. I searched under three plaintiffs and this is how many cases each one has just for 2014 alone: Chase (2265), Nationstar (2481) and Wells Fargo (4542). That's 9288 cases in a year's time for just three servicers/ note owners that randomly came to mind. So how many NY foreclosure cases were filed in the court in 2014 total? How about this, how many foreclosure cases have been filed across all servicers/ note owners for all years that are still active and ongoing? It's impossible to say because one needs to put in some search criteria, you can't do a search that broad. But if I had to guess, I think it would be in the hundreds of thousands.

Incidentally, the ecourts web site is a great place to look at on going cases and even track your own. (You wont see your case, however, until you've either answered the complaint or the time to answer has lapsed and the attorney's have filed for a default judgment.) You can view the complaints and answers and other e-filed documents in most all the cases and you can see how many court appearances a case has had. I have not been officially notified by mail of my first court appearance yet, I saw the date posted on my case. Realtytrac is another great place to look and find out if your servicer's attorney has filed the complaint yet. If you can find your property on Realtytrac, the complaint has been filed. I feel these are useful places to check out when you're trying to figure out your own timeline. Each case is different and whether or not you put up a fight can make a difference. Knowing where you are in the process can be empowering.
I went to the court web site and it's asking for a log in but no where to register. How can I get on to see this info
 

nymess

LoanSafe Member
Nov 9, 2008
60
1
8
I went to the court web site and it's asking for a log in but no where to register. How can I get on to see this info
I figured out how to get on the site but now how to use it...if I don't have a case # is there a way of viewing cases without having case #'s
 

I'll Spin the Wheel Pat!

LoanSafe Member
Mar 25, 2015
40
6
8
I figured out how to get on the site but now how to use it...if I don't have a case # is there a way of viewing cases without having case #'s
In the upper left hand corner, click on web civil supreme. Once you get past the page where you have to enter the characters you see, you can search by a variety of factors, not only index number but Party (you, you're lender), Attorney or Justice. I began with searching under my lender. You can also narrow that down further by the county, year the case began, active or not and you can sort by index number or appearance date. So you can really get an idea of the volume and time table in your own county.

You don't need a log in, but you can create one and sign up for etrack. This allows you to track cases and then you receive an email when ever there is an update to a case. I signed up for my own case! lol

Hope that helps!
 

momny

LoanSafe Member
Apr 2, 2012
69
3
8
Thanks for your informative and funny post. We are also going on 3 years of non-payment, but we moved out of the house last fall- we saved for the new house, got it , love it and we moved on. I am expecting an auction date sometime in the next couple of months. Praying the bank takes it back, so I am not facing deficiency, but if they do go for it, I am planning Chapter 7. At this point I owe 311K with all the fees and stuff, the house can not be sold for even $150K I think. 150K is a lot actually LOL..Will keep you posted and good luck.
 

I'll Spin the Wheel Pat!

LoanSafe Member
Mar 25, 2015
40
6
8
Thanks for your informative and funny post. We are also going on 3 years of non-payment, but we moved out of the house last fall- we saved for the new house, got it , love it and we moved on. I am expecting an auction date sometime in the next couple of months. Praying the bank takes it back, so I am not facing deficiency, but if they do go for it, I am planning Chapter 7. At this point I owe 311K with all the fees and stuff, the house can not be sold for even $150K I think. 150K is a lot actually LOL..Will keep you posted and good luck.
Hi momny,

Just curious, where were you in the foreclosure process when you moved out? Had you gotten served yet? Did you answer the complaint? Attend any settlement conferences? Just trying to get an understanding of the timing of events.

When you say you are praying the bank takes it back so you are not facing a deficiency judgment, do you mean you hope you can do a DIL or cash for keys? My understanding is that at the auction, the bank or anyone can bid. And the deficiency is what it is and the bank can sue or not, though I've yet to hear of anyone getting sued in NY. I've heard of cash for keys deals where they offer you some cash to move out and leave the place in good condition in exchange for forgiveness of debt. But I can't find any NY cases of this either.

My house is worth about the same as yours, maybe a couple dollars more. Paid 305K. Kind of wondering how this is all going to work out myself as far as the deficiency.

Thanks so much for sharing and please keep us updated on the auction and if the bank forgives the debt or pursues you.

Good luck!