Walking in New York

cocosadie

LoanSafe Member
Aug 29, 2013
4
0
1
Hello,
I've decided to walk away from my house.I plan to stay here till the end and pay off as much debt as possible. Haven't paid a full mortgage payment since October. Applied for two mods, both were approved, but even though the terms were somewhat good, payments would be more than original payment, (due to informed escrow). My house is 30,000 underwater, I plan to retire in five years and move.

Loan servicer is Ocwen.

I just have a few questions someone may be able to answer:

1. Property, city and county taxes are not escrowed. Should i pay them?

2. Seems foreclosure timeframe is now 3yrs or more. Can someone give me steps that will happen as I know each state is different.

Thanks for any help
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Welcome and thanks for joining the LoanSafe community.

1. Property, city and county taxes are not escrowed. Should i pay them?
No, if you're plan is to walk away I would forget about paying property taxes. They remain with the property, it's not a personal debt.

2. Seems foreclosure timeframe is now 3yrs or more. Can someone give me steps that will happen as I know each state is different.
The foreclosure process in New York can easily take 2-3 years to complete. Here's a step-by-step guide of how the process may play out from the NY Department if Financial Services. The process below is correct, but IMO the time lines is off and you can add months to each step of the process.

Day 1-15: A mortgage payment is missed.
Day 16-30: A late charge is assessed on payment. The loan servicer (the company that processes your mortgage payments) will send you a notice or otherwise attempt to make contact with you.
Day 30-60+If your mortgage is for a home you live in, the lender or loan servicer must send you a pre-foreclosure notice at least 90 days before commencing foreclosure. This 90-day window gives you the opportunity to try to work with your lender to find an alternative to foreclosure. The notice must tell you how much you must pay to bring the loan current. It must also give you the names and telephone numbers of at least five government approved not-for-profit housing counseling agencies serving the region where you reside.
Day 45-60: The loan servicer will send a "demand" or "breach" letter pointing out that terms of the mortgage have been violated. You will be given 30 days to pay the delinquent amount and the late charge.
Day 90+ The servicer will begin the process of bringing a legal action for foreclosure. This may include referring the loan to its foreclosure department, hiring an attorney to initiate foreclosure proceedings, recording a formal notice of foreclosure or “lis pendens” with the court and serving you with notice of the action through a “summons and complaint.” These proceedings can take 7-9 months.
Once a summons and complaint has been served on you and the lender files proof of service with the court, the court is required to schedule a settlement conference within 60 days. This is an opportunity for you to meet face to face with your lender or lender’s representative to reach a resolution of the case. You should try to meet with a housing counselor or attorney prior to the conference. You should bring proof of income such as your two most recent pay stubs and most recent tax return to the conference.
You will also have to respond to the summons and complaint. If you do not respond, the court can rule against you and schedule a foreclosure sale. If you do respond, the court will rule on whether a foreclosure can occur based on the evidence presented. If the court rules against the borrower (you) a foreclosure sale is scheduled.
The sale usually occurs at least 4 months after the court ruling. A notice of sale is published in a general circulation newspaper once a week for at least 4 weeks prior to the sale.

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The foreclosure process in New York currently takes about 445 days (more like 18-24+ months) from the date of the first missed payment to the sale of the home.


Foreclosure sales in New York are by public auction, usually at a county courthouse. The home is sold to the highest bidder and anyone, including the lender, may bid. Once payment is made and the sale is complete the winning bidder takes ownership of the property.
 

cocosadie

LoanSafe Member
Aug 29, 2013
4
0
1
Thanks Evan,
My main concern is Ocwen won't pay the taxes and the house will go for a tax sale vs foreclosure.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
I wouldn't be alarmed, a foreclosure tax sale generally takes years to complete in any state. I've yet to see this occur from any member here who has walked away and stopped paying both the mortgage and property tax payment, and trust me that's thousands of documented cases here in our forums.
 

momny

LoanSafe Member
Apr 2, 2012
69
3
8
cocosadie: I am in NY and am towards the end (or something like it) of my walk. My last payment was March of 2012. My settlement conference was set up for today. So you can see we are talking more like 2.5 years. But I have not attempted any loan modifications or short sales in order to delay. I did not answer the summons as well, so if you do that you may end up with 3+ years.

Let me know if you have any questions- i will be happy to answer.
 

cocosadie

LoanSafe Member
Aug 29, 2013
4
0
1
Thanks Momny....I actually talked to an attorney yesterday (free consult). He said answer answer any summons and apply for any mod. That will delay also...just don't accept. My main concern was the property taxes. As I don't have escrow...will the bank pay them. The attorney said send them the bills when I get them so they are aware Im not paying. Were yours in escrow? He also said expect at least two years or more. Settlement conferences can also delay as they are often times postponed. How did yours go? Plan to stay as long as possible....
 

momny

LoanSafe Member
Apr 2, 2012
69
3
8
I don't know, I sent my lawyer and will get update from him tomorrow. We are purchasing another property, so I don't want to delay, but if you do, there are many options. I also think the bank will pay the taxes, because otherwise they become 2nd in line after the government and they will lose the house. My taxes were in escrow-yes and they paid everything.
 
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Elsker-meg

LoanSafe Member
Feb 4, 2014
56
4
8
I am also wondering about not paying taxes. I had been told that IF they were not paid you were liable for penalties i.e. not being able to renew license etc. I have 8 yrs to go before i retire. I am not interested in having this HUGE mortgage weigh me down. I am disillusioned, frustrated and frankly furious that I have put myself in this position. I've just given up. So again, advice would be greatly appreciated. What, if any, are the ramifications of not paying taxes on a mortgage that you're not paying and haven't in about 1.5 yrs???
 

momny

LoanSafe Member
Apr 2, 2012
69
3
8
What I know is that if real estate taxes are not paid, government gets a lien on the house and they are always 1st in line, i.e. the bank loses the property (not sure I am phrasing it right), but banks do pay taxes. I am almost 3 years behind and bank has paid all property and school taxes.
 

Elsker-meg

LoanSafe Member
Feb 4, 2014
56
4
8
to momny .. are you also in NY state? and if so how long has it been since you've paid anything .. and/or have any attempts been made to find a solution for you? I truly am frustrated... I listened to someone who was to have been a "professional" ..hmm that has taught me to know better. Would anyone know with not paying of taxes what the ramifications are to you as a person? i.e. how it affects you in the long run?
 

momny

LoanSafe Member
Apr 2, 2012
69
3
8
Elsker-meg,

I am in NY as well. Last payment I made was March or April, 2012. I applied for a loan mod and they offered something like $100 less a month, which I did not take. The house is more than 100K underwater, not to mention it needs a new septic, maybe a water pump and a lot more. We spent every dollar we had the last 7 years to make it our dream home, and lost so much in the process, so I am actually not interested in their help anymore. It just does not make sense financially to me. They (the loan servicer, since BoA transferred it to another servicer) are still sending me loan mod documents and asking me to apply, I am done however. I wish you luck! I know how frustrating, disappointing and depressing it is. I am slowly, slowly beginning to think this is one of my sounder financial decisions.
 

Elsker-meg

LoanSafe Member
Feb 4, 2014
56
4
8
@ momny - I hope all goes well for you and yours.
I know that the gov't gets their fair share, but i was wondering about what (if any) penalties would be to 'us' for not paying these taxes i.e. would we need to pay them down the line or what? I have 8 yrs to retire. I do not want a mortgage of this magnitude hanging over my head... any one have thoughts, suggestions, ideas on how best to work this out????
 

momny

LoanSafe Member
Apr 2, 2012
69
3
8
An update on my case. It will be almost 3 years since I stopped paying my house. The loan was transferred from BoA to Bayview Loan Services 4-5 months ago. The house is still in FC, nothing happening as of yet. We are out of the house. I keep getting calls and packages from Bayview asking me to apply for loan mod-the funniest one was a box 2 weeks ago with a flashlight and printed materials,saying there is light in the tunnel LOL. I am not interested.

Wanted to ask a quick question regarding changing my address on driver's license and mail forwarding. Should I do that? Will it impact my chances of getting cash for keys? Also should I stop services (electricity) and how will that impact cash for keys later on?
 

momny

LoanSafe Member
Apr 2, 2012
69
3
8
Hi guys,

Today I got a notice of Order Appointing Referee from the loan firm of Bay View Servicing. I guess next step is computed charges, and then scheduling of an auction. Am I correct?

Also is there anything I can send to the loan firm asking them to stop sending these notices at my work place, but send them at the property's address? Thanks.
 

momny

LoanSafe Member
Apr 2, 2012
69
3
8
Update, February 2015: Last week I got 100+ pages from BoA/Bayview's attorneys- requesting approval of computed charges and auction from the court. So I guess the end is near (3 years after stopping payments in NY).

I do have one question which is slightly bothering me: This time my husband is also named on the suit- he is not on the mortgage and not on the deed (I bought the house alone). However, he was the one that opened the door when they originally served me with the foreclosure papers, a year or so ago. My wild guess is that is the only reason he is named on the suit- because he resides in the premises with me and they are covering their interest in the property. Could anyone confirm? Thanks!