Hi and welcome to JA. I am Ray and will be the expert helping you today.
In New York, foreclosures are judicial, which means the lender (the plaintiff) must file a lawsuit in state court here.
The lender initiates the foreclosure by filing a complaint with the court. The complaint is served (given) to the borrower, along with a summons that typically provides 20 days to file an answer (if the complaint and summons were served in person) or 30 days (if service was by mail or another way), as well as a "Help for Homeowners" notice advising the homeowner of his or her rights during the foreclosure process.
In NY For all foreclosure actions involving owner-occupied properties, New York law requires the court to hold a mandatory settlement conference within 60 days of the filing of the proof of service with the court clerk. At the settlement conference, the lender and homeowner attempt to reach a mutually agreeable way to avoid foreclosure.
You should also know if you cannot come to an agreement at the settlement conference and if you do not respond to the court action within the specified amount of time, the lender can get a default judgment from the court. This means you automatically lose the case.
To protect yourself you should file an answer, the lender cannot obtain a default judgment. At this point, the lender will most likely file a motion for summary judgment. This type of motion requests that the court grant judgment in favor of the lender because there is no dispute as to the important facts of the case, the homeowner’s defense lacks merit, or does not prove wrongdoing. If summary judgment is denied, then a trial will occur.
If the lender is granted summary judgment or trial, the court will enter a final judgment of foreclosure against you. A sale date is set and published in a newspaper once a week for four weeks (or twice a week for three weeks before the sale date).
So here you want to file an answer and also ask for a settlement conference.Both of these give you the best chance to resolve it or delay as long as possible.
I appreciate the chance to help you today. Please let me know if you have more follow up.Thanks again.