Foreclosure Solutions – Foreclosure Lawyers Queens

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A New Potential Foreclosure Crisis –

As you are undoubtedly aware, many homeowners are in arrears on their mortgages as a result of the 2020 recession brought on by the coronavirus. At first, most lenders had been understanding and would have granted a brief suspension of the late payments. However, as time has passed and homeowner arrears have gotten worse, a lot of lenders have begun to demand a cure, which can take the form of a modification that needs an application from the homeowner or a reinstatement that typically takes more than a year.borrower and the lender’s permission. These new prospective foreclosure scenarios are occurring at a time when the 2008–2014 crisis, which was primarily caused by excessively aggressive mortgage lending and borrowing, is still causing a foreclosure problem, particularly in our Queens and New York areas. Due to the previous recession, there was a foreclosure crisis, the consequences of which can still be seen today in the shape of several older foreclosure cases that are difficult to settle and homeowners who battling mortgage issues that stemmed from the last crisis. To their dismay, many homeowners have discovered that they are in arrears on their mortgages and/or face foreclosure due to the recent instability brought on by the Covid recession in this market that has not yet recovered from the previous recession. Certain problematic mortgage scenarios are very recent, stemming from COVID-19-related furloughs, layoffs, and lockdowns; on the other hand, other mortgage problems have persisted for some years, but have been significantly exacerbated by the current recession. This The fact that this new potential catastrophe is approaching before we have completely recovered from the foreclosures brought on by the last recession makes it worse. Nevertheless, despite these difficulties, homeowners may have a greater opportunity to keep their houses because to programs, policies, court rulings, and laws—mostly implemented during the previous recession, but some recently implemented in response to the current Covid-caused recession as well. A homeowner facing foreclosure or currently going through the foreclosure process needs to acquire trustworthy information from an attorney who specializes in this field as soon as possible since they are often confused about their alternatives and because the counsel of their mortgage holders can be misleading or erroneous.

Foreclosure Solution Strategies –

A common tactic to prevent homes from going into foreclosure is to combine defense and negotiation. A homeowner facing mortgage arrears or facing foreclosure must acquire both Time AND Leverage to optimize their chances of successfully rescuing their house. The various foreclosure remedies—bankruptcy, negotiated settlements, mortgage modification, and foreclosure lawsuit defense—often reinforce and overlap with one another. We represent customers in all kinds of foreclosure proceedings.

According to New York State’s one-action rule, the lender must decide whether to pursue a money judgment or to use their right to foreclosure on the secured property, with the option to later pursue a more limited right to pursue any shortfall. Look, https://www.cadwalader.com/ref-news-views/index.php?nid=31&eid=151A money judgment is occasionally selected if – as in the instance of a secondary mortgage subordinate to an under-secured first mortgage – the lender has adequate or at least significant equity in the property to support their claim. The foreclosure remedy is typically chosen in these situations. – There is either too little or too much equity in the property to back up the lender’s claim. Numerous rights are impacted by whether an action is related to a money judgment or foreclosure. This section is based on the lender’s choice of foreclosure remedy, which is what the lender chooses most of the time.

Deciding on Which Foreclosure Solution to Pursue-

There are a number of different foreclosure solutions that rely on a number of different circumstances. These include bankruptcy (chapters 13, 7 or 11), negotiations (mortgage modifications, forbearance agreements, and short sales), and litigation (responding to the complaint, defending the foreclosure action, and Emergency Orders to Show Cause). We can counsel and defend our customers in every way conceivable during the foreclosure process; these options are evaluated in light of the client’s objectives and the currentthe process of foreclosure. We pose the following crucial questions to our clients in order to help them determine which foreclosure solution to choose: I What stage of the foreclosure is it in? ii) What is your primary objective with the house? iii) What is your primary financial challenge with the mortgage? We investigate and present to our clients the following options for foreclosure solutions:

1. A Negotiated Modification Agreement with the Mortgage Holder – Before and throughout the foreclosure process, as well as when the homeowner first incurs arrears, a modification discussion may be tried. However, for a client who hopes to keep their property, it is typically a good alternative both before the foreclosure process begins and in the early to middle stages of the foreclosure process. By getting a favorable modification to their mortgage terms (a lower interest rate and a longer loan term), expanded and the arrears are settled over the adjusted loan), homeowners avoid the risk of going into foreclosure and are better able to make their frequently reduced payments. The attempt to modify is frequently followed by additional legal actions on the part of the borrowers because changes are voluntary on the part of lenders.
2. A Litigated Defense of the Foreclosure Action -Twenty to thirty days after a client receives service of the Summons and Complaint in the foreclosure action, they must begin a litigated defense of the action by filing an answer or move to dismiss. In addition, attending settlement conferences, motion practice, and discovery are all part of foreclosure defense. If a foreclosure sale is planned, the foreclosure is almost over, or both, an Emergency Order to Show Cause A “stay” of the foreclosure sale may be obtained by the state supreme court. In order to maximize the possibility of a successful resolution through alternative negotiated means, foreclosure defense focuses on flaws in the foreclosure process and slows down the foreclosure process to provide the client time and power.
3. A Chapter 13 Bankruptcy Case Designed to Allow a Cure Over Time for the Mortgage Arrears -As opposed to a mortgage modification, a Chapter 13 case is non-consensual, giving rise to a “automatic stay” that takes effect as soon as the bankruptcy case is filed, providing more assurance in halting the foreclosure process. The client must pay up mortgage arrears under Chapter 13 under a 5 year plan while returning to paying your mortgage on time. Homeowners who are unable to wait for a modification, need to halt a foreclosure sale, or both typically file Chapter 13 later in the foreclosure process. In the event that a client is able to fulfill the Chapter 13 plan’s monthly payment requirements, this is good structuredway to prevent a house from going into foreclosure.
4. A Voluntary Sale of the Property, Pursuant to a Contract of Sale – Voluntary sales are frequently a”Short Sale“because a large number of foreclosure properties are “upside down,” meaning that the mortgage payoff is greater than the property’s fair market value. A suitable buyer who has signed a contract with the foreclosed homeowner is needed for a voluntary sale. In the event of a short sale, the contract must be subject to the lender’s approval, who must agree to accept the lesser sum as full payment after attempts at negotiation.
5. A Refinancing of the Property – One possible way to pay off the arrears that may otherwise lead to a foreclosure is to refinance the property if there is still equity in the home and the homeowner qualifies for either a reverse mortgage or a refinancing.
6. A Chapter 7 Bankruptcy Case Designed to Eliminate Debt – Because of their general financial difficulties, homeowners who are in arrears on their mortgage also frequently have significant other unsecured debt. In order to improve the client’s chances of receiving a modification, a Chapter 7 case could discharge the client’s credit card, personal loan, and other unsecured debt. This would relieve the client of a sizeable debt load that would otherwise reduce the client’s ability to make payments under a potential modification.

Stopping Foreclosure Auction Sales on an Emergency Basis-

The Law Office of Ronald D. Weiss, P.C. may file an application on behalf of a client in a foreclosure action that has already been pending for some time and is about to include a foreclosure auction. Emergency Order to Show Cause or an emergency Chapter 13 or a chapter 7 bankruptcy case, to halt a foreclosure sale in a suitable situation in an effort to defend the client’s rights and offer them additional time to try to correct their position and/or pay off their debt.

Different Kinds of Foreclosure Actions and/or Circumstances Leading to Foreclosure

The majority of foreclosure cases involve residential properties where the homeowner or borrower has fallen behind on their mortgage note payments. Usually, the loan has a 30-year term and is either fixed or adjustable, depending on the interest rates that were in effect when the borrower took out the loan. However, there are many foreclosures these days that do not follow the standard pattern, thus this common arrangement is not universal. Any Any type of secured interest in a property gives a secured lender or lien holder the right to foreclose on it. With expertise in real estate law, bankruptcy law, mortgage modifications and negotiation, foreclosure lawsuit defense, and estate administration, our practice is well-positioned to assist in a variety of foreclosure situations. As alternatives to the standard foreclosure action fact pattern, consider the following:

1) Reverse Mortgage Foreclosures -When someone above a certain legal age—specified by the lender—takes out a reverse mortgage, they are able to borrow money secured by their house without having to make monthly payments. The borrower agrees to give the lender the whole estate upon their death, as opposed to making periodic payments. Seniors with substantial home equity are actively marketed reverse mortgages, and occasionally they are left with no other option owing to financial hardship. nevertheless, to obtain a reverse mortgage. Even in cases when the borrower passes away, problems that result in foreclosure may arise if they fall behind on real estate taxes or with upkeep and repairs of their still-own property. Conversely, the majority of reverse mortgages only result in foreclosure when the borrower passes away, assuming the borrower’s adult children still reside in the house and are unable to sell or refinance it quickly enough to pay off the lender. Despite this, the borrower may attempt to remain in the home longer, which was frequently also their residence, as they look for ways to obtain the money required to prevent the property from going into foreclosure. We frequently defend lawsuits to delay foreclosure for debtors and/or their heirs while we additionally consider chapter 13, refinancing, and/or sale possibilities.

2) Business Loan Foreclosures -A private loan to a small business frequently needs security, and the borrower’s personal residence is the sole or most important possible source of collateral. In the event that the borrower withdraws the cash in exchange for a personal guarantee secured against their house, they have pledged their residence and run the risk of facing foreclosure should they experience financial difficulties and fall behind on their business loan. Our assistance to borrowers in defending against lenders with business loans frequently includes Since this loan was a commercial loan, the interest rate and terms are greater and more harsh than those of a regular residential home mortgage. However, since these foreclosures might impact a family home, these are compassionate cases in which the borrower works with our office to exhaust all possibilities in order to keep the property from going into foreclosure.

3) Tax Lien Foreclosures -Seniors who own their houses typically have them paid off and just need to maintain them by meeting their real estate obligations. The real estate taxes on elderly home owners’ properties may still be exorbitant even with NYS star programs, and their declining health and limited income can lead to arrears in payment. We frequently oppose foreclosures based on real estate tax arrears and/or represent our clients in a Chapter 13 case that we file on their behalf with the goal of catching up on mortgage arrears over sixty (60) months in order to prevent them from losing their houses to foreclosure.

4) Judgment Lien Foreclosures – A home owner frequently has debts and/or liabilities outside of their mortgage. The debt for that judgment, albeit it was often unsecured before becoming a judgment, usually becomes a judgment lien against the borrower’s house if these become troublesome and wind up in court and result in a judgment against the borrower. Although most judgment liens are not often permitted to be used for foreclosure, in more extreme cases, the court awarding the judgment may decide to permit a foreclosure based on the judgment lien. situations that are subject to change, such as large debt amounts, unusual or emotional reasons for the debt, forceful actions from the lender or their counsel, and situations in which the borrower’s substance, health, or welfare don’t seem to require the home. In order to combat judgment lien foreclosures, we frequently defend ourselves in court, participate in settlement talks, and work to have what are essentially default judgments vacated.

5) Foreclosure of Condominium Apartment in a Doorman Building or a Gated Townhouse Community – Similar to privately owned residences, community living arrangements can face foreclosure in the event of a major mortgage default. The service of process, however, can present a problem in condominium buildings and guarded communities since the service processor might not be able to get inside and visit each individual residence. If the security guard, doorman, or “gate keeper” are served, it is legally questionable whether that is proper service.

6) Home Improvement Loan Foreclosure -Home repair loans with problematic terms and frequently subpar home remodeling services are aggressively marketed to people, particularly in minority or impoverished neighborhoods, as well as to seniors. Foreclosure proceedings may ensue if these loans are not paid back on schedule. Based on the suitability of the loans, the services provided in exchange for the loans, and the experience of the businesses involved in these transactions, we can defend the lawsuit and work out a settlement.

7) Death of the Borrower/Owner and Foreclosure Against Heirs –Even while family members may continue to reside at the house and may wish to stay and keep the property and settle the mortgage concerns, it is common for the borrower and owner of the home to pass away without a will, causing the debt to go into default without a clear owner. Determining which relatives to serve with process and to name as defendants in the foreclosure action presents service of process challenges for the lender frequently. In addition to defending these lawsuits, we frequently work to find a solution by assisting with estate administration problems. In the presence of a willIt is easier for us to have a new legally recognized owner who can defend and/or try to settle the foreclosure, request a modification, file a Chapter 13 case, or take other action to save the property because it is more obvious who is the new owner of the property. But in cases when there are multiple prospective heirs, it becomes more difficult for the lender to serve the relevant parties and initiate foreclosure; conversely, it becomes more difficult for the surviving relatives to work with the lender to try to prevent foreclosure. Our practice frequently deals with similar circumstances and finds solutions by defending against foreclosure lawsuits, acting as surrogates in court, and/or engaging in discussions to preserve the property for the heirs who choose to stay on it.

How Has Covid-19 Affected Foreclosure Law and Practice?

The governor of New York State, the state court system, and FHA all placed moratoriums that effectively prevented lenders from foreclosing. Furthermore, the New York State Courts remained closed until May 4, 2020. Upon their reopening, the courts initially declined to receive foreclosure action documents and handled evictions and foreclosures differently than other legal proceedings. From mid-March 2020 to January 2022, there were a number of federal and state moratoriums and restrictions in New York State that essentially discouraged or prevented lawsuit pertaining to foreclosure. Since 2021, the courts have permitted defendants to file a Covid Hardship Affidavit, which provides protection to the defendant, unless the plaintiff demands a hearing to ascertain whether the defendant is not experiencing hardships linked to Covid-19 before permitting the foreclosure action to proceed. In times of national crisis, these moratoriums and other measures have provided relief to borrowers who were unable to make their mortgage payments and have allowed struggling households to get back on their feet. January 15, 2022 marks the final In essence, New York State lifted the effective moratorium on foreclosures and evictions, allowing the foreclosure process to restart. A backlog of problematic mortgage situations has resulted from the moratorium, since the remedy of a moratorium on all foreclosures was broad and effectively included many foreclosures that were not caused by Covid-19. In more normal times, lenders would have been better able to proceed with the foreclosure process. The court-mandated halt to the foreclosure proceedings gave borrowers additional time and opportunities to attempt to either put their mortgage arrears concerns behind them, alter them, or take alternative action. But during this period, the majority of lenders and borrowers chose forbearances, which frequently permitted nonpayment for up to 18 months without the need for payment. New York State’s Rule 9-X, which was particularly designed to mandate that lenders either adjust Covid arrears or defer them to the back of the loan, greatly encouraged the lenders to settle arrears caused by Covid-19 associated issues in addition to the lender forbearances. Furthermore, in January 2022, New York State established a $530 million Homeowners Assistance Fund using federal aid funds to assist homeowners who are behind on their mortgage payments by up to $50,000 per household due to Covid-19-related issues. Please see, https://www.syracuse.com/coronavirus/2022/01/ny-has-530m-to-help-homeowners-behind-on-their-mortgage-payments-heres-how-to-apply.html

The Potential Benefits of Foreclosure Solutions and the Role of our Law Office –

When trying to prevent their home from going into foreclosure, a client’s success greatly depends on the skill of the attorney defending them. Since 1993, we have successfully defended many homeowners in Queens, Nassau County, and Suffolk County against foreclosure. We have also assisted many of them in regaining their financial stability and permanently saving their homes. A homeowner facing foreclosure must carefully consider their legal options in order to resolve and/or stop the foreclosure. Such legal choices are restricted with respect to the number of times, as well as the manner and timing of their pursuit. Allow us to assist you in saving your house with our friendly, reasonably priced experience and knowledge.

Our consultations are free, the advice may be invaluable.

Contact us by phone at (631) 271-3737, or e-mail us at [email protected] to discuss your legal options in a free consultation Your legal alternatives for halting or averting a foreclosure.