The Action has been commenced, now what?
Assuming that your legal counsel has reviewed all the relevant documents and advised that the foreclosure has been properly commenced, now what? Foreclosure actions are often lengthy, and it is imperative that you retain legal counsel with knowledge of the proper procedure and applicable laws and regulations.
First, make sure an answer is filed on your behalf to preserve your rights. This allows you (or your attorney) to get a copy of everything that plaintiff’s counsel files with the Court.
If you are interested in obtaining a loan modification, gather all applicable documentation regarding your income and assets, including but not limited to, pay stubs, bank statements, if you are self employed, profit and loss statements, tax returns, and the forms required to be completed by Plaintiff’s counsel. The sooner you can get the bank or servicer a complete loan modification application, the better. Additionally, make sure that Plaintiff’s counsel has a complete copy of your application for their records.
The Court will schedule a settlement conference where you have the opportunity to meet with counsel for the Plaintiff and the Court oversees the application process. You should attempt to be present at every one of these appearances, if you cannot attend, your attorney can appear on your behalf.
In the event that you are not approved for a loan modification and the Court is in agreement with this determination, there are other loss mitigation options available to you if you would like to attempt to stay in your home. You can apply and see if you qualify for a forbearance agreement or repayment plan, whereby you pay back the money that you owe to the bank over a set period of time.