Foreclosure Solutions Long Island

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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, many lenders have begun to demand a cure, which can take the form of a modification that needs to be approved by the lender or a reinstatement that takes place gradually over a period of time, usually longer than a year. These new possible foreclosure scenarios are emerging at a time when the 2008–2014 crisis is still causing issues with foreclosure, particularly in our Brooklyn neighborhood. and New York regions, which resulted from too aggressive mortgage borrowing and lending. The last recession had resulted in 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 are still facing mortgage issues that had their roots in the previous recession. 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 recent, stemming from Covid-19-related furloughs, layoffs, and lockdowns; nevertheless, other mortgage predicaments have persisted for an extended period. but have gotten considerably worse as a result of this recent recession. The fact that this next possible catastrophe is approaching before we have really 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=151 A money judgment is occasionally preferred if, as in the case of a secondary mortgage subordinate to an under-secured first mortgage, equity in the property is entirely or mostly lacking to support the lender’s claim. The foreclosure remedy is typically chosen where the lender has sufficient or at least significant equity in the property to support their 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 current the 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. Homeowners might avoid the risk of foreclosure and improve their ability to make their frequently reduced mortgage payments by securing a favorable modification in their loan conditions, such as a lower interest rate, an extended loan term, or the resolution of arrears over the modified loan. Since lender adjustments are voluntary, the endeavor to modify is sometimes joined by further legal actions on the
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. In accordance with Chapter 13, the client must resume regular mortgage payments and pay off mortgage arrears over the course of a five-year plan. 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. If a client is able to meet the Chapter 13 plan’s monthly payment requirements, this is a well-organized way to keep a house out of foreclosure.
4. A Voluntary Sale of the Property, Pursuant to a Contract of Sale – Since many foreclosure homes are “upside down,” meaning that the mortgage payoff exceeds the property’s fair market value, a voluntary sale is frequently referred to as a “Short Sale.” 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 lien holder or secured lender having a secured interest in real estate may be able to foreclose on it. Our firm specializes in real estate law, foreclosure lawsuit defense, and In these kinds of various foreclosure situations, bankruptcy law, mortgage modifications and negotiation, and estate administration matters are uniquely qualified to assist. 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 who occasionally have no option but to take out a reverse mortgage owing to financial difficulties are the target market for aggressive sales of reverse mortgages. Problems may arise before the death that result in foreclosure. if the borrower defaults on real estate taxes or fails to make the necessary repairs or maintenance payments on their property, which are remain the borrower’s obligation. The majority of reverse mortgages, however, only become foreclosed upon the borrower’s death if 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’s children frequently attempt to prolong their stay at the property, which was also their home, in an effort to raise the money required to keep 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 defend foreclosures based on real estate tax arrears and/or represent our clients in court to prevent our clients from losing their houses to foreclosure.We file a Chapter 13 petition on their behalf in an attempt to pay off mortgage arrears over a period of sixty (60) months.

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. While the court awarding the judgment has the discretion to allow a foreclosure based on the judgment lien, in more extreme circumstances—where the amount owed is high, the circumstances surrounding the debt are more extreme or emotional, the lender or their attorney is aggressive, and the home does not seem necessary to the borrower’s substance, health, or welfare—that may not always be the case. 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. When a will is present, it is easier for us to have a new legally designated owner of the property because it is more obvious who will inherit it. owner who is able to fight the foreclosure, make an effort to stop it, apply for a modification, initiate a Chapter 13 lawsuit, or take other action to save 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 preventedlawsuit 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. The final effective moratorium imposed by New York State on foreclosures and evictions ended on January 15, 2022, thus permitting the resumption of foreclosure proceedings. Since a moratorium on all foreclosures had been the intended solution, The moratorium, which was wide in scope and effectively included many foreclosures that were not brought on by COVID-19, has resulted in a backlog of difficult mortgage circumstances where lenders would have been better equipped to proceed with the foreclosure procedure in more regular times. Mortgage debtors were afforded additional time and opportunities to attempt to reinstate, modify, or otherwise address their mortgage arrears difficulties during the mandatory halt in the foreclosure legal process. 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. Apart from the lenders’ forbearances New York According to New York State’s Rule 9-X, which was particularly created to mandate that lenders either adjust Covid arrears or defer them to the back of the loan, the state strongly urged the lenders to settle arrears caused by hardships associated to COVID-19. 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. Kindly have a look.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 facing foreclosure in Brooklyn, Nassau County, and Suffolk County. We have also assisted many of them in regaining their financial stability and ultimately saving their homes. When a homeowner is facing foreclosure, they have the following legal choices: The foreclosure must be properly followed in order to resolve and/or stop. 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.