When is a home loan entitled to the foreclosure protections under the Subprime Mortgage Law?
A. There are four principal protections under the foreclosure provisions: Pre-foreclosure notice. RPAPL Section 1304 requires the lender or mortgage loan servicer to send a notice to the borrower, in the form prescribed by the statute, at least 90 days before the lender or servicer may commence legal action against the borrower. The notice advises the borrower that he or she is at risk of losing their home, and that, if they are experiencing financial difficulty, they should consider contacting a housing counselor to help reach a resolution with their lender. This notice must be delivered to any borrower with a high-cost home loan, as defined in Section 6-l of the Banking Law, or a subprime home loan or non-traditional home loan, as defined in RPAPL Section 1304. See below for those definitions. Foreclosure notice. RPAPL Section 1303 requires a foreclosing party in a foreclosure action to send the borrower a notice, which is delivered with the summons and complaint. The notice advises
Related Questions
- Why does the law have two different definitions of subprime mortgage – one for the foreclosure provisions and one for the underwriting standards?
- When is a home loan entitled to the foreclosure protections under the Subprime Mortgage Law?
- What does Florida law require I be told in the event of a mortgage foreclosure?
