What is the foreclosure process for mortgages with private lenders?

When a borrower takes out a mortgage with a private lender in New York, the foreclosure process is similar to a mortgage with a bank. The foreclosure process begins when the borrower defaults on their payments and the lender decides to take legal action. However, before the lender can begin the foreclosure process they must give the borrower notice. This notice must be in writing and sent by certified mail or via the publicly posted notices. The notice must include information such as the amount owed, the lender’s demand that the debt be paid, and the date, time, and place of a court appearance. After the notice is sent, the lender can file a lawsuit with the court. The borrower will then receive an official notice of the lawsuit along with a summons from the court. At the court hearing, the borrower will have the opportunity to present their defense and explain why they are unable to meet their obligations. The court can then decide to either continue the foreclosure process or offer a payment plan. If the court decides to continue the foreclosure process, the borrower will then receive an order from the court to leave the property within a certain number of days. After the borrower vacates the property, the lender can then take the property and sell it to recover the debt.

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What is the foreclosure process for mortgages with private lenders?

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