What is the Foreclosure Process In New York?
https://www.nycourts.gov/CourtHelp/pdfs/Foreclosureflowchart.pdf
Glossary of Foreclosure Terms and Definitions
- Foreclosure – The legal process by which a lender takes ownership of a property when the borrower fails to make payments on their mortgage.
- Default – The failure to make payments on a mortgage loan.
- Acceleration Clause – A provision in a mortgage contract that allows the lender to demand the full amount of the loan if the borrower defaults on payments.
- Lis Pendens – A legal notice filed with the county clerk’s office that indicates that a foreclosure lawsuit has been filed against the property owner.
- Notice of Default – A legal document sent by the lender to the borrower that informs them that they are in default on their mortgage and that legal action may be taken.
- Sheriff’s Sale – A public auction of a foreclosed property conducted by the county sheriff.
- Redemption Period – The period of time during which the borrower has the right to pay off the outstanding balance of the mortgage and prevent the foreclosure from going through.
- Deficiency Judgment – A court order requiring the borrower to pay the remaining balance of the mortgage loan after the sale of the foreclosed property.
- Short Sale – The sale of a property for less than the outstanding balance of the mortgage loan.
- Loan Modification – The restructuring of a mortgage loan to make it more affordable for the borrower and prevent foreclosure.