To see if you qualify for the program, visit our "Do I Qualify" page.

Contact a lawyer. If you cannot afford a lawyer, contact Legal Assistance of Western New York, Inc. You could lose some of your rights to contest a mortgage foreclosure if you do not respond within 20 days to the summons and complaint. But as a practical matter, you need to speak to a lawyer in order to find out if you have a defense.

Step 1 - the bank serves you with a summons and complaint.
Step 2 - the bank files papers with the court to appoint a referee to calculate the amount you owe the bank.
Step 3 - the bank files more papers with the court requesting that the court approve the referee's calculations of the amount you owe and set a date for an auction.
Step 4 - the house is auctioned off to the highest bidder.
Important note - if you do not respond within 20 days to the summons and complaint, the bank is not required to give you notice of Steps 2, 3, and 4.

Usually 6 months to a year. You have a right to stay in your home until the mortgage foreclosure process is complete.

Whoever buys the house at an auction can file court papers to have you evicted. This process can take several weeks.

Even if you don't respond within 20 days, there are several ways to stopa mortgage foreclosure. Here are 3 alternatives:

Settlement conference. Under some circumstances, for cases involving high interest mortgages, written between January 1, 2003 - September 1, 2008, you may have a right to a settlement conference with a judge. At the settlement conference, the judge may be able to get the bank to modify the mortgage or agree to more realistic payment terms.

Modification of mortgage. Many banks have mortgage loan modification programs. Many banks, for instance, participate in the new federal Home Affordable modification program. You can find more details about this program at www.makinghomeaffordable.gov.

Bankruptcy relief. See question 6.

Bankruptcy is not for everyone. There is a special type of bankruptcy called a Chapter 13 proceeding. In some cases, a Chapter 13 bankruptcy can give a homeowner time to pay off mortgage arrears and restructure personal finances. In some cases, filing a Chapter 13 bankruptcy will stop the foreclosure.

In a Chapter 13 bankruptcy, a homeowner files a financial plan called a "Chapter 13 Plan." If approved by the Bankruptcy Court, the Chapter 13 plan can allow up to 5 years to catch up on mortgage payments. The Chapter 13 plan also deals with other debts and can deal with a second mortgage.

A Chapter 13 plan requires a regular source of income. The homeowner must also resume mortgage payments. Under the Chapter 13 plan, a homeowner makes regular payments to a Chapter 13 trustee to catch up on the mortgage and to pay off other debts.

For more information, there is a good article on Chapter 13 in the official website of the U.S. Court system at this site.

Lawyers at Legal Assistance of Western New York, Inc. may be able to represent you in a Chapter 13 bankruptcy.

The first step is to talk to your mortgage lender. They can tell you what services or options they can offer you to remedy the situation and help you keep your home. You may also want to speak with a housing counselor. Though we cannot refinance your loan or bring your loan current, we can offer budgeting counseling and referrals. Often times, once we help you look at your budget, you may find expenses that you can eliminate to get you caught up again. We can also guide you through the process by helping you write letters, make phone calls, and help you to understand the foreclosure process.

The first thing you should do is to talk to your lender. They may be able to offer you options to help keep you from getting behind. It's also a wise idea to communicate to them your difficulties, so if you do get behind they might be more willing to work with you. Also, you can talk to a housing counselor. The biggest thing with keeping you on track will be to look closely at your budget and help you to find items you can reduce or eliminate to free up cash to help you make your mortgage payments. We help you prioritize your bills and needs. Making your house payment is more important than buying a new outfit. We can also help you locate services such as food pantries that can provide you with food and also free up some cash temporarily.

Despite your fears and frustrations, only your lender can really tell you what options are available to you. They are really the only ones that can help you in the long run. We can also offer you assistance and advocate for you. It is NEVER a good idea to avoid communications with your lender. Always respond to their phone calls and letters! The problem will not go away if you ignore it. It will only get worse. One tip to try when calling your lender is to ask for the "loss mitigation" or "foreclosure prevention" departments rather than communicating solely with customer service. These are specialists that can let you know specifically what options are available. Be sure to document all communication. Write down the date, time, the name of the person you spoke with, and the outcome of that conversation.

Never make promises you cannot keep. If you know you cannot afford the new payments, do not agree to that. Be upfront and honest with your lender. It is better to be honest now than to get involved in a deal that will only make the situation worse. Besides, if you accept and still cannot make your monthly payments, your lender will be less likely to try to work something out with you again.

Save it! Lenders do not have to accept partial payments. Save that money and wait until you have a full payment before sending it in again.

For legal advice, contact LAWNY through our Resources Page.

NO! This is a typical foreclosure "rescue" scam called a "false bailout". Buybacks are usually impossible, and the "rescuer" disappears with your deed and the home's equity. You lose possession of your home. These scams are targeted to borrowers who are behind on their mortgage payments. They locate homeowners in trouble through the public foreclosure notices in newspapers. Homeowners are contacted by phone, door-to-door solicitation or advertisements. "Rescuers" promise debt relief instantly. Homeowners are often encouraged to stop communications with their lenders. Scammers promise a fresh start, and offer "hope" at a very stressful time. However, the "rescuers" never intend to help you, they intend on stealing your home!

A subprime mortgage is a mortgage with an interest rate which is 3% higher than the rate for treasury securities of the same term. The interest for treasury securities can be found at the NYS Banking Department website - usually these are 4%- 5% for a 30-year term. Thus, a subprime mortgage is usually a mortgage with an interest rate above 7%. For example, the 30-year treasury rate on 2/13/04 was 5.02%. Thus a 30-year mortgage obtained in February 2004 would be a "subprime" mortgage if the interest rate is over 8.02% (3% added to 5.02%). You have a right to a settlement conference with the court, under New York State law, if your subprime mortgage was obtained between 1/1/03 and 9/1/08.

A non-traditional mortgage is a special type of mortgage in which the bank may apply monthly payments only to interest, without reducing principal. In other words, after years of payments, a borrower may end up owing more than when the mortgage was first taken out, because the borrower's payments have been applied only to interest.