to Stop a Foreclosure!
Are you struggling with your mortgage payments and need assistance?
You may contact your lending institution or Bank in order to inquire whether you qualify for the following options:
A portion of the deferred delinquent amount is added to your normal monthly mortgage payment.
Upon repaying all the arrears in full, at the end of the agreed time period, you resume to pay the original monthly payment amount. Forbearance Plan is typically used as a remedy in instances of “temporary” financial problems. Those with more serious concerns should consider other alternatives.
You should know that a Loan Modification is a form of refinancing your existing mortgage and may involve additional related closing costs.
If such costs are applicable, they are often paid by you the borrower, unless the Bank explicitly agrees in writing to pay them.
Many times said closing costs can be incorporated into the new loan principle.
Unlike a Forbearance Plan, Loan Modifications are typically used in instances where a long-term solution is necessary (i.e. a borrower will never be able to repay an existing loan).
Lenders are open to Loan Modifications because the cost of doing so is less than that of default.
Defaulting on your loan is time sensitive and avoiding the situation is simply unwise!
If you are unable to make your mortgage payments under any circumstances and wish to avoid foreclosure, it is critical that you know that the following options which may be available to you:
The option is available even if your home’s market value is less than the total amount you owe.
Under this option, the owner sells the mortgaged property for less than the outstanding balance of the loan and the lender receives the proceeds.
The lender reserves the right to approve or disapprove any proposed sale and may accept such in partial or full satisfaction of the loan.
Short sales require multiple levels of approvals and conditions, and are relatively complex real estate transactions. As such, it is important that they are handled by an experienced professional.
While the negative impact of a short sale is typically less than that of foreclosure, it still has an adverse affect on one’s credit report.
Once more it is important to have an experienced professional on your side as debt consolidation services may not be operating with your best interests in mind.
Deed in Lieu of Foreclosure:
Lenders may choose not to proceed if the outstanding indebtedness of the borrowers exceeds the current market value of the property. The primary advantage to the borrower is that it immediately releases them from most or all of the personal indebtedness associated with the defaulted loan.
Your failure to answer the Action in a timely manner may grant the Bank the right to obtain a Judgment by Default and a Court Order to auction your home.
Real Property Law section 265-a:
This statute was enacted primarily to protect homeowners against “aggressive ‘equity purchasers’” who, using deceitful practices, could induce the sale of a home for a fraction of its market value.
The Legislature finds and declares that homeowners who are in default of their mortgages or in foreclosure may be vulnerable to fraud, deception, and unfair dealing by Home Equity Purchasers.
During the time period between the default on the mortgage and the schedule foreclosure sale date, homeowners in financial distress, especially poor, elderly and financially unsophisticated homeowners, may be vulnerable to aggressive ‘Equity Purchasers’ who induce them to sell their homes for a small fraction of their fair market values, or in some cases even sign away their homes, through the use of schemes which often involve oral or written misrepresentation, deceit, intimidation, and other unreasonable commercial practices.
Banking Law section 6-L:
This statute was enacted primarily to protect homeowners who have been victims of “predatory lending” and illegal lending practices as defined thereat.
These may include, but are not limited to, lending in excess of the purchase price to enable points and closing fees, financing of fees and points in excess of three percent of the principal amount of the loan, failure to undertake the due diligence required regarding a borrower’s ability to pay a high cost home loan, and not issuing the borrower a required “Consumer Caution and Home Ownership Counseling Notice”.
The guidance and advice of an experience foreclosure lawyer who is on your side will make sure that: (1) you are legally protected throughout the entire proceeding; (2) the foreclosure action is conducted in accordance with the laws of the State of New York; (3) you have utilized all possible legal defenses and remedies available to you; (4) negotiate with the Bank and try to secure more time until you decide how to proceed; and (5) if a settlement is reached, confirm that it is equitable to both sides, signed by a Judge and affirmed by the Court.
The attorneys and staff at Aldad & Associates, P.C. – renowned for their expertise, integrity and commitment to excellence – represent years of successful real estate legal advisory in both commercial and residential settings.
We place emphasis on providing the highest quality legal representation in a courteous, responsive, and professional manner.
Accordingly, each case is treated as if that is exactly what it is, and our clients receive all of the attention and comfort that they require.
A partner of the firm is always available to meet or speak with you during the process so that any of your questions or concerns receives prompt attention.
Kindly visit our firm’s website for a copy of the Articles.
There is no fee or obligation for an initial telephone conversation.
Lior Aldad, Esq.
This booklet has been prepared for informational purposes only. It is not intended to provide legal advice and may not apply to any specific circumstance.
Specific legal advice can only be obtained from a qualified expert who is familiar with the facts of your situation.
Not all borrowers, loan types and/or properties qualify for any or all options.