{"id":2014,"date":"2011-05-31T11:49:34","date_gmt":"2011-05-31T11:49:34","guid":{"rendered":"https:\/\/nybankruptcy.net\/main\/?p=2014"},"modified":"2018-11-28T08:42:28","modified_gmt":"2018-11-28T08:42:28","slug":"will-the-automatic-stay-protect-me-from-foreclosure-in-new-york","status":"publish","type":"post","link":"https:\/\/nybankruptcy.net\/main\/will-the-automatic-stay-protect-me-from-foreclosure-in-new-york\/","title":{"rendered":"Will the automatic stay protect me from foreclosure in New York?"},"content":{"rendered":"

If you are facing foreclosure on your home in New York and you file for bankruptcy, will the automatic stay protect your home from foreclosure?<\/p>\n

The answer:\u00a0 Yes and no.<\/p>\n

Once you file for bankruptcy, the automatic stay goes into effect and prohibits any creditors from taking any actions to collect money or assets from you.\u00a0 This does indeed apply to a foreclosure as well.\u00a0 However, if the mortgage lender or bank does have the right to foreclose on your home, there is the possibility that they can go to the bankruptcy court and get the automatic stay lifted.\u00a0 (Note<\/span>:\u00a0 This is a typical scenario in a chapter 7 case.\u00a0 However, it is not usually the case in chapter 13.)<\/p>\n

And to be clear, the automatic stay is not temporary.\u00a0 It lasts for the duration of the case, whether Chapter 7 or Chapter 13, other than instances where the judge signs an order vacating the stay.<\/p>\n

Many people in foreclosure file a chapter 13.\u00a0 The court will not lift the stay if the debtor makes post-petition payments and has a plan for paying back the arrears that the court confirms. Arrears can be paid back over 5 years without interest. At the end of the five years the loan is fully reinstated if the debtor completes the plan.<\/p>\n

Also the Southern District of New York (SDNY) and some judges in the Eastern District of New York (EDNY) will put the loan into loss mitigation at the request of the debtor.\u00a0 While the court cannot force a loan modification, it can force the lender to talk to the debtor.<\/p>\n

All of the above said, there are various situations where a delay in and of itself may be to the homeowner’s advantage.\u00a0 If you can buy an extra month or two, that’s additional cash on hand you’ll have.\u00a0 Or, if you want to contest the mortgage, the automatic stay can buy you time to do so.<\/p>\n

Contesting the mortgage has also become much more common.\u00a0 Especially in light of the mortgage scandal affecting major home lenders.\u00a0 Banks created tons of mortgages and then broke them up into tradeable pieces and then re-sold them to others who have re-sold them as well.\u00a0 As a result, there are many instances where a bank has not been able to prove it is the rightful owner of the mortgage.\u00a0 Or it takes time for the bank to track down and review the documentation.\u00a0 So there may be strategic advantages to filing for bankruptcy to stop foreclosure.<\/p>\n

Additionally, filing for bankruptcy will cancel unsecured debts that may mean more additional cash on hand for you that may enable you to make necessary payments on your mortgage.\u00a0 Also, there are tax advantages to filing for bankruptcy since it cancels out your mortgage and other secured by your home, even though the lien on your home remains in place.<\/p>\n

For more questions about foreclosure, bankruptcy, the automatic stay and effective strategies for dealing with foreclosure, please feel free to contact<\/a> experienced Brooklyn NY foreclosure attorneys<\/a> Bruce Weiner for a free initial consultation.<\/p>\n","protected":false},"excerpt":{"rendered":"

If you are facing foreclosure on your home in New York and you file for bankruptcy, will the automatic stay protect your home from foreclosure? The answer:\u00a0 Yes and no. Once you file for bankruptcy, the automatic stay goes into effect and prohibits any creditors from taking any actions to collect money or assets from …<\/p>\n

Will the automatic stay protect me from foreclosure in New York?<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"categories":[16,26,22,10,12,14],"tags":[73,2,21,29,30,32,11,13,54,15,51,52,35],"acf":[],"yoast_head":"\nWill the automatic stay protect me from foreclosure in New York?<\/title>\n<meta name=\"description\" content=\"If you are facing foreclosure on your home in New York and you file for bankruptcy, will the automatic stay protect your home from foreclosure? 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