Long Island Bankruptcy Lawyer & Foreclosure Solutions Attorney
Serving Suffolk & Nassau County, Long Island.
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Given the growing numbers of homeowners struggling to save their homes from foreclosure, it’s not surprising to find Long Island short sales on the rise. But many Long Island homeowners have no idea what a short sale is. One of the main reasons why you need to know is because short sales have a much less damaging effect on a Long Island homeowner’s credit than does a foreclosure.
A short sale in Long Island occurs when the proceeds from the sale of a home fall “short” of what the homeowner owes on the mortgage. The homeowner’s mortgage company agrees to accept less than the loan’s full principal balance at settlement.
Not all lenders will agree to short sales. But there are many circumstances where short sales make sense for the lender to accept because the Long Island homeowner can pay off the loan for less than what they own and the lender can avoid a costly, time-intensive foreclosure. In today’s mortgage climate, an increasing number of lenders have become more willing to negotiate short sales. The Obama adminstration’s efforts to help struggling homeowners have also improved chances of getting your Long Island short sale approved.
One or more of the following must apply to your situation in order to qualify for a short sale:
- Financial hardship – Serious financial circumstances leave you unable to afford your mortgage.
- Monthly income shortfall –You cannot afford or soon will not be able to afford your mortgage.
- Insolvency – You do not have the liquid assets that would allow you to pay down your mortgage.
Because of a Long Island short sale’s complicated process, seeking legal expertise can make a big impact on your ability to get approved for a short sale on Long Island as well to negotiate terms of the short sale best suited for your situation and needs. Obtaining legal counsel on your Long Island short sale gives you logic-driven and legal-driven advice on your specific financial, tax and legal consequences despite the emotional sensitivity of being on the brink of foreclosure and bankruptcy.
Many people mistakenly believe that once they’ve missed a house payment or two, that their home is bound to be foreclosed upon.
But today more than ever, that’s far from the case. Lenders are drowning in a glut of properties on the market, and thus have a keen interest in helping homeowners stop home foreclosures in Long Island.
Once a lender has filed a Notice of Default, it becomes much more difficult (but not impossible) to stop home foreclosures on a Long Island property. This filing is a legal way for lenders to protect their interest, and it starts the clock ticking against you as you endeavor to stop home foreclosure on your Long Island home. Since foreclosure is a timeline-driven process, it’s important to act immediately – as soon as you foresee you will have problems in making your payments.
Here are just a few ways homeowners can stop home foreclosures on Long Island properties:
1. Be Proactive: In order to stop home foreclosures in Long Island properties, it’s imperative that you take the initiative and contact your lender before you miss a payment. Oftentimes, terms can be worked out that allow you to make up a missed payment (i.e., paying $100 extra a month for the next year to make up for this months missed $1,200 mortgage payment.) By proactively working with your lender, you’ll be demonstrating your intent to meet your obligation, and your lender will be much more willing to work with you.
2. Extra time to make up missed payments: Some lenders will extend a grace period before taking legal action against you, so it’s a good idea to at least ask for this option.
3. Loan Modification – Reduced rate: Lenders are more willing than ever to consider loan modifications that reduce your interest rate (or convert an adjustable rate into a fixed rate.)
4. Loan Modification – Extended Amortization Period: Another option is to ask to extend the life of your loan, often from a 30-year loan to a 40-year loan.
5. Backload Missed Payments: While some lenders want missed payments repaid up front, tacking missed payments onto the end of the loan is becoming an increasingly popular option. Recalculating and re-amortizing the loan can be a very effective means to help you catch up, and tostop foreclosures on your Long Island property.
LI Bankruptcy & Foreclosure
Law Office of Ronald D. Weiss, P.C.
734 Walt Whitman Rd. Suite 203
Melville, NY 11747
Phone: (631) 271 - 3737
www.ny-bankruptcy.com
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The Law Office of Ronald D. Weiss, P.C. is a debt relief agency as such term is defined under the United States Bankruptcy Code.
Our law firm concentrates in bankruptcy law and in foreclosure solutions. Let us help you OBTAIN DEBT RELIEF and to STOP creditor harassment or foreclosure TODAY!
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